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|15 October, 2018

BUZZ: Egypt's Madinet, SODIC diverge on share swap offer

Shares in Egypt's Madinet Nasr for Housing and Development MNHD.CA surge 8.7 pct to 7.77 Egyptian pounds, and have gained 19.5 pct in past two days; Sixth of October Development and Investment (SODIC) OCDI.CA falls nearly 10 pct to 18.17 pounds, after rising 6.1 pct on Sunday

** SODIC on Sunday said it aimed to take over Madinet by exchanging one of its shares for two Madinet shares in direct swap; offer conditional on SODIC buying at least 51 pct of Madinet

** Arqaam Capital says swap more favourable to Madinet than expected; suggests buying Madinet into deal and removes SODIC from its list of core buys

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** Estimates fair value for SODIC at 28.5 pounds versus 30 stand-alone, and for Madinet at 14.2 pounds versus 13.6 stand-alone

** Egypt stock index .EGX30 falls 0.4 pct

(Reporting by Abinaya Vijayaraghavan in Bengaluru; Editing by Andrew Torchia) ((abinaya.vijayaraghavan@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 2733; Reuters Messaging: abinaya.vijayaraghavan.thomsonreuters.com@reuters.net))