Artoc: negotiations likely to extend beyond today’s deadline to finalize a deal
CAIRO: The Capital Market Authority declined Emaar Misr’s application for share-listing Sunday, citing the company’s failure to submit financial statements reflecting the company’s activities over a one-year period.
The development, announced by Emaar Misr on Monday, came just two days before 60 percent shareholder Artoc Group was due to sell its stake to 40 percent shareholder Emaar Properties, as announced by Minister of Investment Mahmoud Moheiddin earlier in the month.
Artoc Group officials, meanwhile, declined to confirm the nature of ongoing negotiations with Emaar Properties. Still, Artoc and Emaar Misr Spokeswoman Laila Shaker said the listing of shares is a strong demand of Artoc and has been even before ownership restructuring negotiations began six months ago.
“We will appeal the [CMA’s] decision because we believe we have presented all the required documents and fulfilled all conditions, Shaker told The Daily Star Egypt, adding the rejection is likely to cause negotiations to continue for “quite some time.
Although no deal value has been announced by either side, Noozz and Al Alam Al Youm have both reported an agreement as been reached for Emaar Properties to make the acquisition for $160 million (LE 900 million).
In late February, Emaar Misr finalized its purchase of the Sidi Abdel Rahman land plot on the Mediterranean Coast for LE 1.2 billion after the amount was paid in full to the Holding Company for Tourism earlier in the month. The company also invited prominent government officials, including People s Assembly Speaker Ahmed Fathi Sorour, to launch the sales center for its Uptown Cairo development in Mokattam despite incomplete construction of the 7,000 square meter facility.
According to Artoc Group Chairman Shafik Gabr, Emaar Misr now controls LE 6 billion in assets and is looking for more development opportunities on the Red Sea coast and in the Nile Valley between Luxor and Aswan to capitalize on the recent trend of developing the second home concept in Egypt for Arabs and Europeans.
Emaar Egypt reported last week it has achieved LE 3.9 million in net income in its first year of operation. In a statement, the company said its general assembly convened for its first ordinary meeting which brought in representatives from Emaar Properties.
In announcing Artoc has agreed to sell its share in Emaar Misr to Emaar Properties, Moheiddin said the government will follow the development of Emaar’s undertaken projects in Sidi Abdel Rahman and El Mokattam. He warned the government will take the “necessary measures on March 28 to “protect the interests of the state and investment in Egypt should the conflict between the Emaar Misr partners hinder the project’s implementation.
