Egypt’s Madinet Nasr for Housing and Development (MNHD) has called off a planned merger via a share-swap with the Sixth of October Development and Investment Company (SODIC) due to failure to reach an agreement with the latter company over the former swap coefficient pact, Invest-Gate reports.

In October 2018, SODIC planned to acquire at least 51% stake in MNHD through a mandatory purchase offer that entailed the exchange of one of SODIC’s shares for every two of MNHD’s, however, the latter rejected this mandatory purchase offer, SODIC said in a bourse filing on January 22.

Both property developers did not disclose the reasons behind calling off the planned deal. Meanwhile, trading on SODIC’s shares was suspended pending a response to the EGX, according to the Egyptian stock exchange website.

If the deal had consummated, both firms’ total vacant land area will surpass 15 mn square meters, providing 15 years of development visibility in premium and geographically diverse locations that will eventually create one of the largest entities in Egypt’s real estate market, according to an earlier bourse filing.

MNHD previously stated that the proposed combination would bring together MNHD’s large land bank of over 9 mn square meters – located mainly in east Cairo – and its strong sales track record, and SODIC’s premium brand name and track record with a complementary land bank across west and east Cairo as well as the North Coast.