Naeem Holding for Investment is to merge its Reacap Financial Investments with real estate group Wadi Degla Developments, creating a company with a book value of EGP 3.5 bn (USD 197.18 mn), Reuters reports.

Naeem Holding CEO Youssef Al Far says, “Under the deal, Wadi Degla will have a 74% stake in the new entity, while Naeem Holding will have 26%.”

The merger deal aims to combine Reacap’s mainly administrative activities with Wadi Degla’s real estate business and to expand its investment portfolio, according to Reuters.

Far says that the merger will be executed via a Reacap Financial Investments capital increase of about 300 mn shares at a fair value of EGP 11 per share.