trending Market Intelligence /marketintelligence/en/news-insights/trending/zy2ahouaopcec4vwmwelpa2 content esgSubNav
In This List

Sixth of October Development to launch offer for Madinet Nasr

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective

Blog

Insights Weekly: Midstream sector gains; loan growth momentum; insurance M&A on the rise


Sixth of October Development to launch offer for Madinet Nasr

Sixth of October Development & Investment Co.'s board agreed to launch a mandatory tender offer for Madinet Nasr for Housing & Development S.A.E through a direct share swap that will allow the latter to remain listed on the Egyptian Exchange.

The swap ratio is preliminarily set at 2 shares of urban developer Madinet Nasr for one share of Sixth of October, subject to Sixth of October acquiring at least 51% of Madinet Nasr's shares.

The combination would result in an entity with a total undeveloped land bank of more than 15 million square meters and more than 15 years of development potential, creating one of Egypt's largest real estate developers, according to a release.

The two companies were reported to be discussing a possible merger or acquisition in April.

Citing a research note from Naeem Holding, a Bloomberg News report noted that Sixth of October's Oct. 11 closing price of 19.02 Egyptian pounds values each Madinet Nasr share at 9.50 pounds per share, reflecting a 46% premium over Madinet Nasr's 6.50 pound-per-share closing price.

As of Oct. 12, US$1 was equivalent to 17.94 Egyptian pounds.