Sixth of October Development and Investment Company (SODIC) eyes buying a 10% stake in state-run Heliopolis Company for Housing and Development (HHD), coming after the government had nodded passing the latter’s management to a strategic property investor, Reuters reports.
“In principle, we are interested in the matter, but the offer terms are not clear … We will see whether these terms are favorable for us and whether we will gain added-value from our presence in [HHD],” CEO of SODIC Magued Sherif told the news agency on September 19.
On June 12, Egypt’s Ministry of Public Enterprise Sector and Holding Company for Construction and Development agreed to offer 22% of HHD’s equity in a share sale – or via “a limited bidding” – on the Egyptian Stock Exchange (EGX) before year-end, half of which will be sold to the investor, according to a bourse filing on June 12.
The plan still needs the approval of the property developer’s general assembly, the statement noted. However, no further details were revealed on the transaction’s terms.
SODIC, the third largest real estate company listed on EGX, has recently has launched its newest signature project in New Zayed, or “The Estates,” debuting a series of new projects to be developed in the newly-introduced area in west Cairo, and pumping investments totaled at EGP 34 bn over ten years.