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Amer Group to list Porto Holding after break-up

Amer Group to list Porto Holding after break-up
Amer Group
AMER
-2.06% 1.00 -0.02
Mansour Amer, Chairman and Founder of Egypt’s real estate firm Amer Group Holding said the group constructed six new Porto projects at a time when the Egyptian market was shrinking and fluctuating due to the January popular uprising.
Speaking on the sidelines of a press conference held on Sunday to announce the board’s decision to split the group into two companies, the top official added that Amer is continuing with its projects despite difficulties, which boosted confidence of its clients.
The group’s sales rose to EGP 3 billion by the end of 2013 and to EGP 3.4 billion by the end of the first nine months of FY14, according to Amer.
He also said bank loans obtained by his group amounted to EGP 154.5 million by the end of the nine-month period, compared with around EGP 338 million by 2010-end.
Amer’s board approved splitting the group into two companies: Amer Group Holding (demerging company) and Porto Group Holding (demerged company).
Commenting on the split-up move, the chairman said the board decided to spin off the Porto real estate segment after it achieved strong figures and boosted its competitive standing, which will bolster the position of Amer stocks in the Egyptian Exchange (EGX), given the impact of Porto projects on stock evaluation.
Amer also revealed that shares of the new demerged company, Porto Group Holding, will be listed on EGX immediately after the company is established.
He indicated that the new entities would attract more investors to the group’s shares, as it will allow investors to have a deeper understanding for the operations of each company.
The break-up will generate more liquidity for shares of both companies, Amer noted.
In reply to a question asked by Mubasher about the possibility of spinning off other operations, Amer said there are clear plans in this regard, which are to repeat the Porto experiment with other units. However, he declined to define specific timings for such a move.
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.
(written by Amr Adel, Ramy Sameeh; translated by Sayed Abdel Rahman)