PHOTO
Photo of the construction site of Orascom Development's O West integrated township project in West Cairo. Image used for illustrative purpose.
Orascom Development Egypt (ODE) has received a preliminary non-binding offer from Sixth of October Development & Investment Company (SODIC) for the proposed acquisition of its subsidiary, Orascom for Real Estate (ORE), the developer said in a statement.
ORE, owned 70 percent by ODE, is the developer 'O West,' a 4.2-million square metre real estate development in West Cairo.
The non-binding offer includes an indicative and preliminary equity value purchase price of 2.46 billion Egyptian pounds ($125.12 million) for 100 percent of ORE.
The offer is subject to the fulfilment of several regulatory approvals.
The statement added that SODIC will commence the due diligence process and engage management to initiate negotiations for the transaction.
SODIC is 85.5 percent owned by Aldar, the UAE-listed real estate developer, and ADQ, an Abu Dhabi-based investment and holding company.
ORE has appointed EFG Hermes as its financial advisor, the statement said.
In July, SODIC had made a non-binding offer to buy up to 100 percent of Egyptian developer Madinet Nasr Housing & Development (MNHD), which was rejected by the latter's shareholders.
(1 US Dollar = 19.70 Egyptian pounds)
By Marwa Abo Almajd; Editing by P Deol & Anoop Menon)
