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Thursday, 10 October 2019

Egypt’s HHD receives eight requests for 10% stake purchase, management role

Emaar, SODIC, BPE, ODE interested in HHD management: State-owned Heliopolis Housing and Development’s (HHD) offer of a 10% stake in return for managing the company has piqued the interest of at least eight companies, sources told the press. Emaar Misr, SODIC, private equity firm BPE, and Orascom Development Egypt (ODE) are among the companies considering bidding for the stake, the sources noted. EFG Hermes is also reportedly in the race, an unnamed source from the investment bank said.

BPE was the only one to comment. BPE founding partner Alaadin Saba told the newspaper that the private equity firm will submit a formal request for qualification “within days.” So far, HHD has only received one formal request from an alliance of a private equity firm and real estate developer, anonymous sources separately told Al Mal. Several other real estate developers have also been in touch with HHD for general inquiries about the plan.

HHD will put out a shortlist of qualified companies by mid-November ahead of issuing a conditions booklet early December. The qualified companies will then be able to submit technical and financial bids, HHD Chairman Hany El Deeb said.

Background: The state-owned real estate developer invited private equity firms or alliances of private equity firms and private real estate developers to qualify as eligible bidders for the sale earlier this month. The sale will include a 10% stake that will be offered to either private equity firms or alliances of private equity firms and private real estate developers that will both invest in and manage the company’s day-to-day operations. Shareholders approved the move at an extraordinary general assembly meeting in August. Public Enterprises Minister Hisham Tawfik recently told us that the sale will not take place before the end of the year pending the wrap-up of a handful of procedures.

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