Egypt's SODIC offers to buy Orascom Real Estate for $125 mln

Orascom Development Holding AG

25/10/2022 09:25

CAIRO, Oct 25 (Reuters) - Egyptian property developer
SODIC  OCDI.CA  has offered to buy Orascom Real Estate for $125
million, the residential compound builder's parent company
Orascom Development Egypt  ORHD.CA  said on Tuesday. 
    Abu Dhabi's Aldar Properties  ALDAR.AD  and state holding
company ADQ bought a controlling stake in SODIC late last year,
and the purchase of Orascom Real Estate would further expand
their Egyptian real estate business.
    The offer comes as Egypt has sought to attract billions of
dollars in investment from the Gulf while it struggles with the
financial impact of the war in Ukraine, such as soaring
commodities costs.
    ADQ bought stakes worth around $1.85 billion in Egyptian
companies in April.
    Orascom Development said its board of directors had agreed
to allow SODIC to conduct the required due diligence and
authorised the company's management to negotiate based on the
non-binding offer, which was made at an indicative purchase
price of 2.46 billion Egyptian pounds ($125 million).
    EFG Hermes has been appointed by the shareholders of Orascom
Real Estate to assume the role of financial adviser, it added.
    As of 0806 GMT, Orascom Development shares were up about 7%,
while SODIC's shares were about 3.6% higher.
    SODIC said in July it had submitted an offer to buy up to
100% of Madinet Nasr for Housing and Development's (MNHD) share
capital at a price that valued MNHD at 6.18 billion Egyptian
pounds. However, MNHD rebuffed the offer, saying it did not
represent the company's true value and called on SODIC to
reconsider it.
 (Reporting by Mahmoud Salama
Editing by Mark Potter)