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Monday, 14 January 2019

FRA grants SODIC grace period to submit MTO for MNHD acquisition

M&A WATCH- FRA grants SODIC 60-day grace period to submit MTO for MNHD acquisition: The Financial Regulatory Authority (FRA) has approved upmarket real estate developer SODIC’s request for a 60-day grace period to submit its mandatory tender offer to acquire at least 51% of Madinet Nasr Housing and Development (MNHD) through a direct share swap, the FRA said in a statement yesterday (pdf). SODIC said in a statement to the EGX (pdf) yesterday that it needs more time to complete its due diligence and the valuation report, both of which are required before carrying through with the transaction. SODIC had announced in October it has preliminarily set the swap ratio at two shares of MNHD for one share of SODIC, and the transaction could allow MNHD to remain listed on the EGX. The transaction would be the first all-share M&A on the EGX, with regulations allowing the transaction still in the pipeline. The acquisition will rank as one of the largest in EGX history.

Advisers: MNHD had tapped EFG Hermes to advise on the transaction, while Zaki Hashem & Partners are serving as legal counsel. SODIC had previously appointed CI Capital and White & Case as its advisers.

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