Cairo – Mubasher: Sixth of October for Development and Investment (SODIC) is planning to submit a purchase offer to acquire around 51% stake in Madinet Nasr Housing and Development (MNHD) through a share swap.

Upon the deal, Sodic will exchange one of its shares for two of MNHD’s shares, Sodic said in a statement.

Both firms will carry on operation separately, and will remain listed on the Egyptian Exchange (EGX), the statement added.

The deal is expected to form a robust economic entity in Egypt’s real estate market that “would meet demands and offer more competitive products,” according to the statement.

“The entity will be able to develop bigger land plots in premium and geographically diverse locations,” it said.

Moreover, the deal is likely to boost the business of each property developer as SODIC has a solid selling power, while MNHD has a huge portfolio of lands in Eastern Cairo.

The offer will come into force following a valuation by an independent adviser and completion of due diligence, Sodic indicated.