ICEC

Naeem’s Reacap to merge with Egyptian property developer Wadi Degla

Cairo-based investment house Naeem Holding announced Tuesday that it will merge its Reacap Financial Investments with real estate developer Wadi Degal Developments, creating a company with a book value of 3.5 billion Egyptian pounds ($197 million).

Wadi Degla will have a 74 percent stake in the new company, while Naeem Holding will have 26 percent, Naeem Holding chief executive Youssef Al Far said at a news conference in Cairo.

The merger will be carried out by increasing Reacap’s capital, which stood at 500 million pounds, by 300 million shares at a fair value of 11 pounds per share, Far added.

The merger deal aims to combine Reacap’s mainly administrative activities with Wadi Degla’s real estate business and to expand its investment portfolio.

Naeem’s CEO further said that he expected the merger to be completed by the end of the current year.

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