The board of Egypt's real estate firm Amer Group Holding invited shareholders to attend an extraordinary general meeting to look into approving the proposed dividend plan for the first nine months of FY14.
Shareholders will also discuss the proposal for breaking up the group into two companies and adjusting the stock par value and restructuring the ownership structure of subsidiaries accordingly.
The company’s board approved on Saturday splitting into two companies.
The company will be split into two companies: Amer Group Holding (demerging company) and Porto Group Holding (demerged company).
The demerging company will issued shares equal to the pre-split shares while adjusting the stock par value in light of the company’s share in net assets. Similarly, shares of the demerged company will be issued equal to the number of shares and a par value that reflects the difference between the par value of the demerging company pre and post-split.
Amer board decided to adjust the stock par value for Amer Group Holding (demerging company) through reducing capital after split to EGP 0.20, while the par value of Porto Group (demerged company) will be at EGP 0.10 per share.
Amer Group had posted a surge by 1064% in consolidated net profit for the first nine months of FY14 to EGP 216.96 million, compared with EGP 18.63 million net profit in the same period a year earlier.
Standalone financial results for the same period showed EGP 280.6 million net profit, compared with EGP 19.1 million net profit in the first nine months of FY13.
Consolidated business results for the first half of 2012 had revealed posting net profits of EGP 126.79 million, 37.1% down from a year earlier net profits of EGP 201.435 million. The standalone business results have shown net losses of EGP 13.486 million during H1/2012, compared to net profits of EGP 486.622 million during H1/2011.