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MNHD clarifies reasons behind MINKA's acquisition

MNHD clarifies reasons behind MINKA's acquisition
The acquisition will widen MNHD's product range
Madinet Masr
MASR
-1.08% 3.67 -0.04

Cairo – MubasherMadinet Nasr Housing and Development (MNHD) announced more details about the acquisition of MINKA Developments from the Sallam family. 

The company said that MINKA's projects are located inside Taj City's land plot and that the products sold by MINKA complement and do not directly compete with MNHD's products, according to a bourse disclosure on Tuesday. 

MINKA only sells fully furnished turnkey units with appliances, while MNHD sells semi-furnished units, the company clarified, noting that the acquisition will widen MNHD's product range. 

To finance the acquisition, MNHD will increase its issued and paid-up capital by EGP 374.4 million through a rights issue. Part of the proceeds will be used to finance the acquisition, while the rest will be used to finance a new project in Assiut.

The Sallam family will use the proceeds of the transaction to buy shares of MNHD from the market and inject an additional EGP 50 million to acquire at least 5% of MNHD. 

BPE Partners' managed funds and the National Company for Construction and Development will not sell any shares in MNHD to the Sallam family.

In the first half (H1) of 2021, MNHD logged EGP 228.6 million in net profits, compared to EGP 482 million in H1-20.