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Thursday, 16 December 2021

MNHD GA completes fair value study of Minka

MNHD approves EGP 232 mn valuation of Minka ahead of acquisition: Madinet Nasr Housing and Development’s (MNHD) general assembly has approved a fair value study that will see it shell out a maximum EGP 232 mn to acquire Minka Development and a related special purpose vehicle company, EgyCan for Real Estate Development, according to an EGX filing (pdf). The study, conducted by Baker Tilly Wahid Abdel Ghaffar & Co, pegs the value of the real estate firm 5.5% above the top end of the EGP 200-220 mn that MNHD said it expected to pay when it first announced the acquisition plan in October. MNHD will now seek to negotiate a final price for the company with the current shareholders, according to the statement.

It’s all staying in the family: MNHD appointed Abdallah Sallam, who is also managing director at Minka, as its CEO at the same time as it announced the acquisition in October. Minka is owned by the Sallam family, who are set to use the proceeds from the sale of their company — plus an additional EGP 50 mn — to purchase a minimum 5% stake in MNHD, we were told back in October. This will make the family the third largest minority shareholder in the company after BPE Partners’ managed fund’s 29% and National Company for Construction and Developments’ 15%.


The fair value study indicates that MNHD will pay a maximum of EGP 232 mn and not a minimum as was said in a previous version of the story. 

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