SODIC, Madinet Nasr Housing gain after acquisition offer

CAIRO – 11 April 2018: Shares of Madinet Nasr Housing and Sixth of October Development & Investment (SODIC) were among top gainers during Wednesday’s session after the announcement of SODIC welcoming the offer of a merger or acquisition with the housing company.

Madinet Nasr Housing topped the gainer list of the session at 12.60 percent after trading on 13.86 million shares with a turnover of LE 199.5 million ($11.3 million), traded through 2,382 transactions.

SODIC ranked third on the list at 8.89 percent after trading over 3.64 million shares, traded through 923 transactions, with a turnover of LE 105.26 million.

On Wednesday, SODIC welcomed the discussions with Madinet Nasr Housing to explore potential strategic alternatives for the two companies by merging or acquisition.

The company clarified in a filling to the Egyptian Exchange (EGX) that the discussions will bring benefits and synergies to both companies. SODIC further noted that the negotiations will determine the expansion of businesses, maximizing the return for shareholders of both firms.

On Tuesday, April 11, the board of Madinet Nasr Housing approved beginning negotiations with SODIC on a possible merger or acquisition.

SODIC's current capital is LE 1.36 billion distributed through 342.29 million shares at par value of LE 4 per share, while Madinet Nasr Housing’s capital records LE 997.1 million distributed through 997.1 million shares at par value of LE 1 per share.

SODIC is a public company listed on the EGX since March 1998. It operates within the real estate sector, focusing on real estate development. It has 27 subsidiaries operating across Egypt and Syria. SODIC is based in Giza and was established in May 1996.

Madinet Nasr Housing and Development has also been listed on the EGX since May 1995. It operates within the real estate sector, focusing on diversified real estate activities, with four subsidiaries operating across Egypt, working on education services, construction and engineering, real estate development and multi-utilities. It was established in January 1959.