Back to the complete issue
Wednesday, 14 October 2020

HCCD kicks off restructuring plans to streamline operations

M&A WATCH- The new, slimmer HCCD: The state-owned Holding Company for Construction and Development (HCCD) is merging 11 of its subsidiary companies into just five in a bid to streamline the company and make it more efficient, Chairman Hesham Aboul Atta tells Enterprise. The company has completed the merger of six of its subsidiaries into just two and will merge six others into three by next week, he said. Combining the companies — many of which operate in the same sectors and have overlapping operations — will improve HCCD’s efficiency and profitability, he said.

The breakdown:

  • A construction arm will be made of Cairo Contracting and Real Estate Investment, General Construction Co. Rolin, and the General Egyptian Buildings Co.;
  • A contracting and building materials arm will be composed of Atlas General Contracting and Real Estate Investments, Air Condition & Elevator Works Co., Misr Concrete Development Co., and the Egyptian Contracting Co. El Abd;
  • An electricity arm will see the merger of High Dam Electrical and Industrial Projects Co. (Hideleco) and the General Company For Electrical Projects (Eleject);
  • An infrastructure arm will consist of El Nasr Building and Construction Co. (Egyco) and Ramses Agricultural Projects Management;
  • A major construction arm will be made of Nasr General Contracting Co. along with the Arab Co. for Foundations (Vibro).

On a related note: HCCD’s subsidiary Heliopolis Housing and Development (HDD) is not seeking a loan for the first year in its five-year development strategy that was unveiled earlier this week, Aboul Atta said. Instead, the company is in negotiations with a number of banks to secure funding for its pipeline of projects without adding to its debt burden, he said, declining to explain how the transaction might work until an agreement is reached.

HHD’s strategy will see the company develop EGP 100 bn of assets through partnerships with private developers after scrapping plans to sell a stake with management rights earlier this year. The strategy focuses on putting the development of the first phases of the New Heliopolis and Heliopark projects on track before the end of 2021, before raising the company’s capital by as much as EGP 1.2 bn to finance later phases.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.