AAIB takes 12.25% stake in Palm Hills Developments, appearing to buy out the Emirates’ Union Properties
M&A WATCH- AAIB takes 12.25% stake in Palm Hills Developments, appearing to buy out the Emirates’ Union Properties. Arab African International Bank (AAIB) has purchased a 12.25% stake in Palm Hills Developments (PHD) for EGP 544.2 mn, according to a disclosure (pdf) to the EGX. Although the filing doesn’t specify which shareholder the bank acquired the stake from, UPP Capital Investment is the only investor with comparable holdings (pdf) in the Egyptian real estate developer. The seller handed off its 381.9 mn shares in PHD at an average price of EGP 1.43 each, on par with the stock’s closing price yesterday. Arab African International Securities acted as the broker in the transaction.
Background: UPP Capital is a subsidiary of Emirati real estate company Union Properties. Union’s website makes no mention of a recent transaction and the company has not made a disclosure to the Dubai Financial Market as of dispatch time this morning. Union is the developer of MotorCity, Dubai Autodrome, Green Community and Uptown MotorCity, among other destinations.