Pioneers Holding submits offer to acquire 100% stocks in CHD

Egyptian Financial Supervisory Authority obliges Pioneers to submit an approved study from a financial consultant about the purchasing price

Pioneers Holding submitted the compulsory purchase offer for 100% of the stocks of Cairo Housing and Development, at a price of EGP 11.80 [per share], said Khaled El-Tayeb, Member of Board of Directors of Pioneers and the Chairman of Cairo for Housing and Development.
This came "after Pioneers' shares exceeded approximately 45.73%. The step comes in accordance with the provisions of Chapter 12 of the Executive Regulation of Law 95/1992," El-Tayeb added.
Pioneers announced on Sunday that its Board of Directors agreed to submit a purchase offer for the stocks in Cairo for Housing and Development, and to authorise the Chairman and the Managing Director to take all the procedures required towards this end.
Pioneers Holding group owns up to 45.73% of the stocks in Cairo for Housing and Development, after one of its subsidiaries purchased 8,167,345 (9.07%) stocks.
According to Sherif Samy, Chairman of the Egyptian Financial Supervisory Authority (EFSA), in statements to Daily News Egypt, the EFSA will oblige Pioneers to submit a financial study conducted by an independent financial consultant to determine the purchasing price, given the fact that there is administrative representation for Pioneers in the company that will be acquired.
The company's capital amounts to EGP 450.14m distributed over 90,028,002 stocks, with a nominal value of EGP 5 for the stock.
Waleed Zaki, Chairman of Pioneers Holding, said in a press statement that the company decided to increase the capital by EGP 3bn, after the approval of the Extraordinary General Assembly, in order to use them in the investment opportunities that are subject to continuous inspection by the investment committee.
According to Zaki, this decision is part of the company's effort to support its own investment portfolio in its subsidiaries. He explained that since the beginning of 2011, the company began the injection of investments through acquisition operations worth EGP 3.2bn in both the real estate investment and construction sectors, as well as the industrial sector.
The real estate sector in Egypt will have more growth opportunities during the upcoming period, as demand rates for all housing categories (fine, medium and low) are much higher than the supply of residential units. The annual demand in Egypt is nearly 500,000 housing units, while the supply is 250,000 units. As such, the group is trying to be strongly present in the construction and real estate sectors, according to Zaki.
Pioneers Holding owns direct and indirect quota contributions in more than 50 subsidiary companies, including nine registered in the Egyptian stock exchange. The results of Pioneers Holding studies revealed that during the first quarter of FY (2015/2016), the company achieved a net profit of EGP 121,948m, with an increase of 98% compared to FY 2014/2015.