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Pioneers Holding to buy 60% of Roaya Group: CEO

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Reuters – Pioneers Holding plans to acquire a 60% stake in real estate investment firm Roaya Group by the end of the first quarter of this year, Waleed Zaki, the firm’s chief executive told Reuters in an interview.

The deal is expected to cost around EGP 1bn ($144m), he said.

Pioneers specialises in brokerage services, offers market research and investment banking for retail and institutional clients but also has investment arms in real estate, industry and financial services.

Zaki said the group is considering floating and listing Roaya Group on the stock market after it acquires 60% of the firm, which had EGP 900m in revenue in 2013.

Pioneers is also looking to acquire a significant stake in a food company this year, Zaki said, declining to give further details.

Egypt’s economy has taken a big hit after the popular uprising toppled Hosni Mubarak in 2011, driving many foreign investors and tourists away.

“After the revolution we took on a contractionary policy in the financial services sector but since the third quarter of 2013 the firm has revised that policy and we are working on increasing investments and focusing on it strongly,” he said.

“We saw that many of those who exited the market after the 2011 uprising will return once more now.”

Investors are hoping for more stability with the implementation of an army-led plan that could see new presidential and parliamentary elections this year.

The army ousted the country’s first elected leader Mohamed Morsi in July, following mass protests against his rule.

Earlier this month Pioneers said it plans to spend EGP 1.2bn in 2014 to complete ongoing investments and implement new ones.

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