The board of directors of the Egyptian Madinet Nasr Housing and Development Company rejected the acquisition offer submitted by SODIC, a subsidiary of the UAE company, Aldar.
The company said that the value of the offer submitted by SODIC was not in line with the true value of the company and its assets.
The board of directors added, in a letter sent to the Emirati Al Dar company, which owns the ruling stake in SODIC, and was published by the Egyptian Stock Exchange today, Sunday, that it decided to invite the company's general assembly to consider SODIC's request. Conducting a due diligence study on Nasr City Company.
He continued: The Board of Directors did not agree to your request in light of your offer.
He called on the company's board of directors to reconsider the submitted offer, explaining that if a price commensurate with the fair value of the company was reached, Madinet Nasr Housing would welcome the start of the procedures for closing the deal.
SODIC Corporation, in a statement dated July 5, announced that it had submitted a non-binding offer for the possible cash acquisition of up to 100% of the share capital of a debtor company Nasr Housing and Development through a compulsory purchase offer.
The offer includes an indicative purchase price that ranges between EGP 3.20 to EGP 3.40 per share, and the average indicative price is EGP 3.30 per share, with an estimated value of EGP 6.18 billion for the company.
SODIC stated that the offer price is 32% higher than the closing price of Madinat Nasr for Housing and Development on July 4, and it is also 45%, 45% and 40% higher than the average Weighted share price over the past three months, six months and twelve months, respectively.
