(Photo from PHD)
Egypt’s second largest real estate developer Palm Hills Development will issue 8m shares at EGP 2 per share, the company said in a statement published on the Egyptian Stock Exchange website.
The board’s head called for a meeting on 12 January to obtain the initial approval of the Board of Directors to increase their capital from EGP 3.5bn to EGP 6bn.
Palm Hills, which is listed on the stock market, should take approval on actions from the Egyptian Financial Supervisory Authority (EFSA).
Last November, UAE-based Aabar Investments PJS acquired a 5.1% stake in Palm Hills, which the company said reflects the Egyptian real estate sector’s ability to attract regional and international investment.
Following the 25 January Revolution, Palm Hills was among the companies that faced hurdles regarding land ownership. However, last June, the company settled its dispute with the cabinet and the New Urban Communities Authority. This allowed it to resume its activities at two sites in Sheikh Zayed City and 6th of October City, which comprise around 56.77 feddans.
The settlement agreement is valued at EGP 299m, of which EGP 96.4m is currently outstanding after deducting previous payments made by the company and including outstanding interest.
