Sixth of October for Development and Investment (SODIC) announced its preliminary intentions to submit a mandatory tender offer to acquire at least 51% stake in Egypt’s urban developer Madinet Nasr Housing and Development (MNHD) through a direct share swap (securities swap only), Invest-Gate reports.

The swap ratio is preliminary set at two shares of MNHD for one share of SODIC, the developer said in a released statement, noting that both firms will carry on their operations separately and will remain listed on the Egyptian Exchange (EGX).

If the deal 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 the statement.

On its part, MNHD said in a bourse filing that it had received the written offer on October 14 and would study it for the completion of due diligence.

Last May, both developers held a meeting to discuss options available for either merger or acquisition, in the presence of EFG Hermes and Zaki Hashem & Partners (ZH&P) as MNHD’s advisors, while SODIC has chosen CI Capital and MHR & Partners (White & Case) to be the company’s advisors.

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 of Cairo and the North Coast.