ICON seeks to offer Tanmia Investments on EGX in Q2 of 2021

CAIRO – 30 March 2021: Industrial Engineering Company for Construction and Development (ENGC) – ICON- completed the separation of its unused real estate assets into a new company during 2020.

ICON clarified in a statement to the Egyptian Exchange (EGX) Tuesday that it seeks to complete the procedures for registering the new company and listing it on the EGX before the end of the second quarter of 2021.

Previously, the extraordinary general assembly has agreed to divide the company into two Egyptian joint stock companies with the same shareholders and shareholding ratios, on the basis of the book value in accordance with the company's financial statements on December 31, 2019.

During the current month, ICON carried out a process of transferring the ownership of 2.24 million shares, representing 74.99 percent of the total shares of Sun Infinite East Solar Energy from ICON - divider - to Tanmia for Real Estate Investment Company - divided.

The implementation of the ownership transfer process on the Egyptian Stock Exchange came without cash payment, and in light of the identical ownership structure of both ICON and Tanmia for real estate investment with the same shareholders and lineage.

The assembly agreed to choose the horizontal division as a method for dividing the assets and liabilities so that each shareholder of the divider company gets the same number of shares owned by him in the divided company, and the ICON company (the distributor) maintains all the assets and liabilities in general except for the assets to be transferred to the divided company.

Meanwhile, Tanmia Company maintains a total area of ​​167.25 thousand square meters of land, transfers the balance of advance payments to purchase assets for the purchase of 5 administrative units in Cairo Festival City, the investment balance of the company's contribution to the capital of Sun Infinite East Solar Energy Company, and the transfer of customer balances, receipts and balance Cash and balances due from related parties.

The assembly set the authorized capital of the new company at LE 500 million, and the issued capital of the company at LE 121.25 million, distributed among 121.25 million shares, the value of each share.

The assembly agreed to list the shares of the divided company’s capital on the Egyptian Stock Exchange, upon completion of the division procedures and the establishment of the split company.

ICON recorded a net profit of LE 107.46 million during 2020, compared to LE 111.88 million in 2019, taking into account the minority rights.