Egyptian bn’aire Naguib Sawiris acquires 60% of Qatari Diar's City Gate project
M&A WATCH- Naguib’s Ora Developers acquires 60% of Qatari Diar's City Gate project: Egyptian businessman Naguib Sawiris has agreed in principle to acquire 60% of Qatari Diar's stalled City Gate project through Ora Developers for USD 658 mn, the local press reports, citing unnamed sources. The acquisition would resolve Qatari Diar’s four-year legal row with the New Urban Communities Authority and dispute with the government, while giving it the exit it has been looking for. Previous reports had suggested that Ora Developers was in “advanced talks” to acquire a 51% stake in the project for USD 800 mn before Diar offered to amend City Gate’s customer contracts in exchange for them dropping lawsuits against the company last month.
What does the agreement entail? The agreement, which Sawiri says has yet to be finalized, will see the two companies forming a partnership to develop the project. Diar will also have to pay EGP 1.25 bn fine to the New Urban Communities Authority for the delay in completing the project before activating the partnership agreement.