Release from Raya Holding For financial Investments (RAYA.CA) Concerning a Subsidiary Company

IR RELEASE

Cairo | October 26, 2021

RAYA HOLDING ANNOUNCES THE CONCLUSION OF 100% SALE OF BARIQ FOR ADVANCED INDUSTRIES FOR A TOTAL CONSIDERATION OF EGP 571 MILLION

Exiting the PET recycling industry came as part of Raya Holding's strategy to achieve the highest possible value to our shareholders

Cairo, Egypt | October 26, 2021 - Raya Holding for Financial Investments (RAYA.CA on EGX), an auspicious investment conglomerate managing a diversified investment portfolio, announced today the successful conclusion of a process that began early 2019, when Raya Holding Board of Directors (BOD) adopted a strategy to divest non-core assets, and significantly invest into expanding the group's core operations. Later in April 2021, Raya Holding signed a Share Purchase Agreement (SPA) relating to the sale of 100% of the shares of BariQ for Techno and Advanced Industries SAE, one of Raya's subsidiaries, with Intro for Waste Management and Material Recovery Ltd, one of Intro Investment Holding subsidiaries. Today, Raya announces the successful closure of this transaction which includes the acquisition of the total issued share capital of the company, corresponding to 6.5 Mn shares of BariQ for Techno and Advanced Industries SAE.

Throughout the transaction, From the Sell-Side: Al Ahly Pharos Investment Banking acted as financial advisor and investment bankers, Zaki Hashem and Partners (ZH&P) as legal advisors, Al Ahly Pharos Brokerage Co. as brokers. From the Buy-Side: Compass Capital acted as financial advisor and investment bankers, Al Tamimi and Co (ATCO) were legal advisors, RSM were Financial and Tax Due Diligence advisors, Corporate Leasing Company Egypt (Corplease) were the acquisition-financiers, and Beltone Brokerage Co. were transaction brokers. Escrow: Commercial International Bank (CIB - Egypt) acted as the Escrow Agent for the transaction.

Today, Raya Holding announces the closure of a deal that lasted almost two years in the making. Intro for Waste Management acquired a total of 6,500,000 shares of BariQ for Techno and Advanced Industries, corresponding to 100% of its capital (98.76% owned by Raya Holding and 1.24% owned by Raya's subsidiaries). The total aggregate cash value of the transaction amounts to EGP 496 Mn, of which EGP 491 Mn corresponds to the purchase price for the shares, and EGP 5 Mn for a 7,500 sqm adjacent land plot owned by Tadweer, one of Raya's subsidiaries, located in CPC industrial Complex. In addition to the total aggregate cash portion, an additional permitted leakage and debt waiver amounting to EGP 75 Mn were accounted for as additional consideration; bringing the total transaction's value to EGP 571 Mn. Raya's Exit value yields an Internal Rate of Return (IRR) of almost 36% since BariQ's inception.

ABOUT BARIQ:

Established in 2010 by Raya Holding, with a total aggregate invested capital equal to EGP 65 Million, BariQ for Techno and Advanced Industries S.A.E is an Egyptian Joint Stock Company specialized in recycling of post- consumer plastic packaging products, and producing Recycled Polyethylene Terephthalate (RPET) with a total annual capacity of c.15,000 Metric Tons of RPET; with an overall objective to align with the overall global momentum towards a sustainable and circular economy that meets with the Global Sustainable Development Goals (SDGs). BariQ continues to be the sole food-grade PET recycler in the Middle East and North Africa region, and exports 100% of its production to European clients and renowned global brand owners; a clear testament for the company's undisputed operational excellence and track record.

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Cairo | October 26, 2021

On this occasion, Medhat Khalil, Chairman of Raya Holding for Financial Investments, commented: "We are very pleased to have taken part in establishing BariQ, a market leader in the MENA's PET recycling industry. We also believe that this agreement would benefit everyone, especially given the strong synergies between BariQ and the existing Intro's investments. Moreover, it allows us to meet with our overall strategic objectives and investment strategies, and to continue our efforts in maximizing shareholders' value. We shall continue to focus our resources on our core lines of business, which is expected to witness expansionary initiatives in the upcoming period."

Ahmed Khalil, CEO of Raya Holding for Financial Investments, added: "Exiting the recycling industry came as part of Raya Holding's investment strategy of monetizing non-core assets, and we are proud to have taken a strategic role in such pivotal sector in the Egyptian economy. We wish Intro & BariQ teams a prolonged success in growing Egypt's sustainable and circular economy further. We take pride that Raya continues to embark upon successful ventures, and hand-it over to new phases in its business cycle."

Hossam Hussein, CFO of Raya Holding for Financial Investments, concluded: "I would like to thank all the stakeholders and advisors whom have contributed to this transaction' success, and I'm incredibly proud of the hard work and dedication of our colleagues in BariQ's team whom have contributed in positioning the company as the sole market leader in the field of PET recycling, and in making this transaction possible."

- ENDS -

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Cairo | October 26, 2021

About Raya Holding for Financial Investments SAE

Raya Holding is an auspicious investment conglomerate Headquartered in Cairo, Egypt, managing a diversified investment portfolio. As the parent company of three mature lines of business, and nine up-and coming lines of business, Raya Holding operates in the fields of information technology (IT), consumer electronics & home appliances trading, contact center outsourcing services (CCO), data center outsourcing services (DCO), smart buildings, food and beverage manufacturing and trading, land transport, logistical solutions, PET re-manufacturing,light-mobility vehicles, E-payments and Non-banking financial services. Raya Holding empowers more than 14,000 proficient employees, accommodating a wide international customer base from on-ground operations spanning Egypt, Saudi Arabia, UAE, Qatar, Poland, Tanzania and Nigeria. As at end of 1H2020, Raya Holding delivered a group consolidated turnover of EGP 8.3 billion, a gross profit of EGP c. 1.4 billion, and an EBITDA "Earnings Before Interest, Taxes, Depreciation and Amortization" of EGP 0.6 billion.

Raya Holding for Financial Investments is one of the leading investment holding companies in Egypt boasting the largest market share in its mature lines of business (IT, Trading, CC) and aspires to be the market leader in its remaining up-and coming lines of business. Raya Holding is listed on the Egyptian Stock Exchange, and is currently trading under the symbol "RAYA.CA".

For further information, please contact:

Investments, Investor Relations & Corporate Finance| Raya Holding for Financial Investments

Hossam Hussein

Ahmed Nour-Eldin Hassan

Raneem Meligy

Youssef El Gohary

T: [phone]

[e-mail] http://www.rayacorp.com/investor-relations/

RAYA.CA on the EGX
Number of Shares	2,143,995,190
Share Price (Oct. 24, '21)	EGP 2.40
Market Cap (Oct. 24, '21)	EGP 5,145,588,456

Shareholding Structure

(as at June 30, 2021)

	58.1%		Medhat Khalil &
			family
			Al Taweel family
			Ashraf Kheir El Din
			Financial Holdings
	9.7%		Free float
9.4%	10.8%
	12.0%

Shareholders by Geography

(as at June 30, 2021)

82.5%		Egypt
		UK
		EU
0.8%		Arab
4.4%		Others

12.2% 0.1%

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