Sixth of October Development and Investment Company (SODIC) says it will enter into preliminary talks with Madinet Nasr Housing & Development (MNHD) to explore potential strategic alternatives for the two entities by way of merger or acquisition, Invest-Gate reports.

SODIC’s announcement, which was announced in a bourse filing, comes following MNHD’s statement that their board of directors has given its chairman the approval to open talks with SODIC with a view to either acquiring the upmarket developer or merging the two companies.

The proposed merger or acquisition would bring together MNHD’s large land bank of over 9 mn square meter and its strong sales track record (having achieved net sales of EGP 5.0 bn in 2017) and “SODIC’ equally strong sales of EGP 5.5 bn in 2017.

MNHD also added that the transaction would expand both firms’ client base “and expediting the monetization of the land bank through launches, sales, and execution.” If the transaction goes through, it would to the create one of the largest players in the Egyptian real estate sector.

MNHD has tapped EFG Hermes to advise on the transaction, while Zaki Hashem & Partners are serving as legal counsel.