Cairo – Mubasher: The board of Pioneers Holding Company approved the proposal drafted by a committee of the General Authority for Investment to split the entity into three companies at total net equity rights of EGP 7.03 billion while maintaining the shareholders and their equity ownership rates.

The split transaction will result in setting up Pioneers Holding for Financial Investments at net equity rights of EGP 253.4 million, according to a disclosure to the Egyptian Exchange (EGX) on Wednesday.

Pioneers Holding will focus on establishing securities firms or increasing their capital.

The new entity Pioneers Properties will be set up at net equity rights worth EGP 4.75 billion, and will focus on investing in real estate development and contracting business.

Meanwhile, the third firm is Gadwa Industrial Development which will be incorporated at net equity rights of EGP 2.03 billion.

Last November, the extraordinary general meeting (EGM) of Pioneers Holding nodded for splitting the company into three separate firms specialised in financial services, real estate and contracting, and the industrial sector.

A company’s official had told Mubasher in 2019 that the board decided to Pioneers Holding.

It is worth noting that the holding company has achieved net profits worth EGP in the first quarter (Q1) of 2021.