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Egypt's Naeem Holding to merge Reacap business with Wadi Degla- CEO

Tue 8th August, 2017 4:24pm
By Ehab Farouk 
    CAIRO, Aug 8 (Reuters) - Naeem Holding for Investments SAE 
 NAHO.CA  will merge its Reacap Financial Investments SAE 
 REAC.CA  with real estate group Wadi Degla Developments, 
creating a company with a book value of 3.5 billion Egyptian 
pounds ($197.18 million), Naeem Holding CEO Youssef Al Far said 
on Tuesday. 
    Under the deal, Wadi Degla will have a 74 percent stake in 
the new entity, while Naeem Holding will have 26 percent, Far, 
speaking at a news conference in Cairo, said. 
    The merger deal, announced after the stock market closed on 
Tuesday, aims to combine Reacap's mainly administrative 
activities with Wadi Degla's real estate business and to expand 
its investment portfolio. 
    Far said the merger would be executed via a Reacap Financial 
Investments capital increase of about 300 million shares at a 
fair value of 11 pounds per share. 
    Reacap, which is listed on the Cairo bourse, has a total 
capital of 500 million pounds. 
    The merger is expected to be completed by the end of the 
year, with the new board to decide on whether to retain the name 
Reacap Financial Investments or not, Far told Reuters. 
    Wadi Degla Chairman Maged Helmy said the real estate 
portfolio of the new company would stand at 6 million square 
metres, with 2 million of that still undeveloped and 4 currently 
under development. 
 
($1 = 17.7500 Egyptian pounds) 
 
 (Reporting by Ehab Farouk; Writing by Eric Knecht and Arwa 
Gaballa. Editing by Jane Merriman) 
 ((arwa.gaballa@thomsonreuters.com; +20 2 2578 3290;)) 
 
Keywords: REACAP M&A WADI DEGLA/
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