Emaar Misr Appoints BDO as Independent Advisor to Finalize 100% Acquisition of Sky Tower via Share Swap
Evaluative Step to Calculate the Swap Ratio
Emaar Misr for Development has decided to appoint "BDO Keys Financial Advisors" as an independent financial advisor to determine the fair value of its shares alongside those of "Sky Tower for Real Estate Development." This step aims to calculate the share swap ratio in preparation for the anticipated acquisition between the two entities.
This move aligns with the extraordinary general assembly resolutions passed on July 18, 2024, which authorized management to acquire the remaining 75% stake in Sky Tower. Emaar Misr seeks to raise its ownership to 100% by issuing new capital increase shares allocated to the seller’s shareholders, requiring no cash outflows.
Strong H1 Results Amid Currency Difference Challenges
The financial evaluation coincides with strong operational performance. Emaar Misr’s consolidated financial statements for the first half of the year revealed a 42% year-on-year surge in net profits, reaching EGP 5.56 billion (compared to EGP 3.91 billion in the same period last year), driven by a rise in total revenues to EGP 11.08 billion.
Conversely, the company faces financing pressures arising from exchange rate volatility and inflation. Second-quarter results reflected a net loss of EGP 2.2 billion, heavily impacted by foreign exchange losses totaling EGP 4.2 billion.
Strengthening Land Bank and Integrating Operations
Through this full acquisition, Emaar Misr aims to bolster its land bank and ready real estate assets, while integrating construction operations to absorb rising operational costs in the local market.
Established in 2005 as a subsidiary of UAE-based Emaar Properties, Emaar Misr is one of the leading real estate developers in Egypt, known for flagship projects such as Marassi on the North Coast, Uptown Cairo in Mokattam, and Mivida in New Cairo.