FILE - EGX
CAIRO – 23 January 2019: Madinet Nasr Housing and Development’s (MNHD) board of directors decided to suspend the merger and acquisition negotiations with Sixth of October for Development and Investment (SODIC).
In a filing to the Egyptian Exchange (EGX), MNHD attributed the decline of negotiations to disagreement on the terms of the swap transaction.
SODIC announced in October 2018 that its mandatory tender offer to MNHD would be implemented through a stock swap deal. One share of SODIC would be exchanged for two shares of MNHD.
In April, MNHD said that its board was considering a possible merger or acquisition with SODIC.
Earlier, the board of directors of Nasr City Housing and Development Company decided to appoint Zaki Hashem & Partners as legal advisor to SODIC's deal, which intends to make a compulsory purchase offer through direct exchange of shares (share swap only).
The Egyptian Financial Supervisory Authority (EFSA) agreed earlier this month to extend the deadline for the Sixth October Development and Investment Company (SODIC) to submit a compulsory purchase offer to Nasr City for Housing and Development, after SODIC offered an extending request on January 10.
Madinet Nasr Housing operates within the real estate sector focusing on diversified real estate Activities. It has four subsidiaries operating across Egypt, working on education services, construction and engineering, real estate development and multi-Utilities.
Meanwhile, SODIC operates within the real estate sector focusing on real estate Development. It has 27 subsidiaries operating across Egypt and Syria. SODIC is based in Giza, Egypt and was established in May 1996.
MNHD’s capital is LE 1.2 billion, distributed over 1.2 billion shares, with a nominal value of LE 1 per share, while SODIC’s capital is LE 1.37 billion, distributed over 342.3 million shares at a nominal value of LE 4 per share.