Aldar Properties and ADQ-backed Egyptian real estate platform, Sixth of October for Development and Investment Company (SODIC), has submitted a non-binding offer to acquire up to 100 percent share capital of Madinet Nasr Housing & Development (MNHD), valuing the company at $328 million.
The proposed acquisition is in line with SODIC’s strategy to expand its portfolio of mixed-use residential communities in Greater Cairo, the North Coast and other major markets through both organic growth and strategic acquisitions in order to achieve scale and realize synergies.
SODIC is majority owned by a consortium comprising Aldar and ADQ, following its acquisition of 85.5 percent of the company’s shares in December 2021. The consortium supports SODIC’s growth and development as a leading national developer by scale and reputation, enabling it to unlock opportunities, expand business networks, and implement best practices across many areas of common interest and expertise.
Headquartered in Cairo and listed on the Egyptian Exchange (EGX), Madinet Nasr is one of Egypt’s premier urban community developers and has been developing master plans and serving its customers and communities since its establishment in 1959. Madinet Nasr‘s operational focus is in the East Cairo area, where its two flagship projects, Taj City and Sarai, are located, with a sizeable land bank for expansion opportunities.
“The strategic direction of SODIC, as supported by its Controlling Shareholders, is to grow its market share and continue to expand its development portfolio in Egypt,” SODIC said in a statement.
SODIC has addressed the non-binding offer to the Board of Directors of MNHD offering an indicative purchase price in the range of $0.17 to $0.18 per share, subject to conditions, assumptions and terms as set out in the Offer.
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