Saudi Public Investment Fund Eyes Stake In Palm Hills Development
Date
9/27/2023 2:33:42 PM
(MENAFN- Daily News Egypt) The Saudi Public investment Fund (PIF) is in talks with the Arab African International bank to buy its 13% stake in Palm Hills Development, the second-largest Real estate company listed on the Egyptian Exchange, sources close to the deal told Daily News Egypt.
The sources said that the negotiations started about a month ago and the price is being finalized. They added that the deal will be executed in dollars, as the bank records its stake in the company in dollars. They expected the deal to be completed before the end of the year.
Palm Hills Development is owned by the Al-Mansour and Maghraby Investment and Development Group, which holds 41.88% of the shares, and Yassin Mansour, the main shareholder, who owns 7.29%. The rest of the shares are traded freely on the Egyptian Exchange.
The company's shares rose by about 7% on Monday, reaching EGP 2.15 per share.
Palm Hills Development reported a 14% increase in its profits during the first half of this year, reaching EGP 638.8m, compared to EGP 561.7m in the same period last year. Its revenues slightly declined to EGP 6.91bn, compared to EGP 6.94bn in the first half of 2022.
Sources told Daily News Egypt last week that the PIF is also negotiating to acquire three Egyptian private companies operating in the education, health, and real estate sectors. The sources said that the fund plans to finalize the three deals before the end of this year.
The company's new sales grew by 84% year-on-year, reaching EGP 19.6bn in the first half of this year, driven by strong demand for its projects in Badia City and Palm Hills New Cairo. Badia City recorded a 229% growth in new sales, reaching EGP 10.1bn, while Palm Hills New Cairo achieved a 15% growth, reaching EGP 2.2bn.
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