Muhammad Farag and Muhammad Al-Mahm:
Posted on: Saturday, June 25, 2022 – 6:01 PM | Last update: Sunday, June 26, 2022 – 12:32 AM
Sources who spoke to “Maal and Business – Al-Shorouk” suggested that Aldar Real Estate Company, which is listed on the Abu Dhabi Financial Market, would offer an estimated price of EGP 3 per share to buy a majority stake in Madinat Misr Housing and Development Company.
The sources said that the famous Emirati company aims to acquire 1.684 billion shares of the Egyptian company’s capital, which represents 90% of the ownership structure, and at least 51% as a minimum, and it is likely that the initial offer price will exceed the barrier of 3 pounds per share.
The source stressed that the final price of the offer and the timing of its submission have not yet been determined, and that in all cases, it will be discretionary, conditional on the completion of the comprehensive due diligence checks on Madinet Nasr for Housing and Development and its subsidiaries.
Earlier this month, press reports revealed that the Emirati company is considering buying a stake in Madinet Nasr for Housing and Development, while the company commented on the news by saying, “It has not received any tender offers so far.”
Madinet Nasr for Housing and Development is one of the largest Egyptian companies working in the field of real estate development, as it owns a portfolio of untapped land with an area of about 6.67 million square meters, in East Cairo.
The company achieved consolidated revenues in 2021, amounting to 2.23 billion pounds, while the net profit amounted to 282 million pounds, compared to approximately one billion pounds during 2020, a decrease of 72%.
The number of units delivered before the company during 2021 reached 10,030 units, compared to 767 units in 2020, an increase of 34%.
While Aldar Properties is one of the largest real estate development companies in the UAE, especially the Emirate of Abu Dhabi, where it was established as a joint stock company in 2004, and owns 44 subsidiaries in the Emirates, Cayman Islands, and Egypt.
In December 2021, Aldar Properties acquired 85.5% of the shares of SODIC’s capital, in a deal with a total value of about 6.1 billion pounds.