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Wednesday, 11 April 2018

MNHD explores possible merger or acquisition with SODIC

M&A WATCH- MNHD wants to open talks on merger with, or acquisition of, SODIC: The board of directors of Madinet Nasr Housing & Development (MNHD) has given its chairman the go ahead to open talks with our friends at SODIC with a view to either acquiring the upmarket developer or merging the two companies, MNHD said in a regulatory filing yesterday (pdf).The proposed combination would bring together MNHD’s large land bank of over 9 mn sqm and its strong sales track record (having achieved net sales of EGP 5.0 bn in 2017) and “SODIC’s premium brand name and track record as a prominent real estate development in Egypt” with sales of EGP 5.5 bn in 2017, MNHD said. MNHD says 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, according to the statement.

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