Cairo – Mubasher: Madinet Nasr Housing and Development (MNHD) announced that its board of directors rejected the mandatory tender offering (MTO) submitted for the acquisition of a controlling stake of up to 90% of its 52%-owned subsidiary Nasr Company for Civil Works.
As the major shareholder in Nasr Company for Civil Works, the MNHD sees that the offered price of EGP 11 per share does not represent the fair value (FV) of the company’s stock based on its financial position, earnings, and the stock’s trading price on the Egyptian Exchange (EGX), according to a bourse disclosure on Sunday.
The offered price is also lower than the book value of the company’s stock as of the financial statements for the third period of 2020.
On Thursday, the Egyptian Financial Regulatory Authority (FRA) approved the publication of the MTO submitted for the acquisition of Nasr Company for Civil Works.
The offer included 13.17 million shares or 90% of the capital of Nasr Company for Civil Works at a value of EGP 11 a share.
The MTO was submitted by Odin Investments, Odin Capital Group for Financial Investments, Egyptians Real Estate Fund, Unimix Egypt for Ready-mix Concrete, Redcon Construction, and New Smart for Industrial and Commercial Investments.
During the first nine months of 2020, MNHD reported net profits of EGP 628.99 million, slightly down from EGP 630.98 million in the year-ago period.
Nasr Company for Civil Works incurred net losses of EGP 3.56 million in the January-September period, against net profits of EGP 11.4 million in the corresponding period a year earlier.
