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Due diligence for RECAP and Wadi Degla partnership to be completed this year - Daily News Egypt

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Due diligence for RECAP and Wadi Degla partnership to be completed this year

Eman Sadek, the director of investor relations at RECAP Financial Investments—the real estate arm of Naeem Holding—said that the due diligence examination for a partnership with Wadi Degla Developments is set to be completed this year. The company announced the partnership in August 2016, yet procedures are not completed. Sadek noted that the due diligence …


Eman Sadek, the director of investor relations at RECAP Financial Investments—the real estate arm of Naeem Holding—said that the due diligence examination for a partnership with Wadi Degla Developments is set to be completed this year.

The company announced the partnership in August 2016, yet procedures are not completed. Sadek noted that the due diligence delay is natural as RECAP owns stakes in several companies and holds ownership of several other subsidiaries. She added that the due diligence examination will determine the appropriate form of this strategic alliance. The examination evaluates the assets, expected cash flows, and tax positions, and then determines the fair value of the two companies. Therefore, the studies will determine the best formation for the alliance and whether it suits both companies.

The partnership aims to employ the assets, cash, and expertise of the two companies to expand in real estate projects. Wadi Degla Developments is specialised in developing real estate projects, and it owns land in Cairo, Ain Sokhna, Hurghada, and the North Coast. The company has been operating in Egypt for over ten years.

RECAP Investments owns, through its companies, 505,000sqm in Marsa Alam and about 25,000sqm in Smart Village. In terms of business results, the company achieved a growth of 88% in total revenues in 2016, to register EGP 140.65m, driven by sales of residential units owned by Naeem Real Estate.

The company operates in the real estate field, as well as the formation and management of securities portfolios. The capital of the company amounts to EGP 530.9m, distributed among 106.2 million shares, with a nominal value of EGP 5 per share.

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https://dailynewsegypt.com/2017/03/26/due-diligence-recap-wadi-degla-partnership-completed-year/
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