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EFSA says Wadi Degla should obtain its approval to acquire Reacap shares - Daily News Egypt

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EFSA says Wadi Degla should obtain its approval to acquire Reacap shares

The authority halted the trading on Recap’s stocks for further details about the fair value


Financial watchdog Egyptian Financial Supervisory Authority (EFSA) said on Sunday that Wadi Degla shareholders should obtain its prior approval to own shares in Reacap Financial Investments, according to a press release.

The watchdog added that this move aims to maintain the stability of non-banking financial markets and the efficiency of markets as well as to protect the rights of shareholders.

On 8 August, Reacap’s board agreed on increasing the amount of issued capital and the increased shares will be issued in return with the acquired shares of 99.99% of Wadi Degla Holding’s shareholders.

The chairperson of Reacap’s board has been assigned in the extraordinary general meeting (EGM) to study the issued and paid capital share.

Naeem Holding owns 56% of Reacap’s shares, with investments equivalent to 19.5% of Naeem’s total investments.

Under the deal, Wadi Degla will have a 74% stake in the new entity, while Naeem Holding will have 26%.

The board also approved the fair value (FV) of Reacap’s stock, prepared by Fincorp Investment, at EGP 11.09 per share.

Reacap’s capital share reached EGP 500m in the Egyptian Exchange (EGX) at a par value of EGP 10.09 per share.

Naeem Holding owns 56% of Reacap’s shares, with investments equivalent to 19.5% of Naeem’s total investments, according to the statement.

The merger, if approved, is expected to be completed by the end of the year, with the new board to decide on whether to retain the name Reacap Financial Investments or not.

Wadi Degla Chairperson Maged Helmy said following announcing the deal the real estate portfolio of the new company would stand at 6 million square metres, with 2 million of that still undeveloped and 4 million currently under development.

Meanwhile, the watchdog has decided to suspend trading on Reacap stocks awaiting further details about the stock’s fair value.

Reacap’s stock closed on an up note last week at EGP 4.45.

Topics: EFSA wadi degla

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https://ww.dailynewssegypt.com/2017/08/14/efsa-says-wadi-degla-obtain-approval-acquire-reacap-shares/
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