Moheiddin: Government to take necessary measures to protect interests of state, investment in Egypt
CAIRO: Artoc Group has agreed to sell its 60 percent stake in Emaar Misr to Emaar Properties, the Ministry of Investment (MoI) announced Tuesday.
The deal, signed Monday, requires both sides to conclude the transaction by March 27. A deal value is yet to be announced and contract terms were not disclosed at press time.
A spokesman for Artoc Group declined to comment or confirm the company has agreed to sell its stake, potentially ending more than six months of negotiations.
The agreement, whose clauses shall remain amongst the partners at the present time, entails several precedent conditions and clauses of implementation including the listing of Emaar Misr shares, an Artoc statement said. The statement added Emaar Misr was committed to meeting its obligations to its ongoing projects, clients and contractors and announcing the implementation of the agreement in two weeks.
Speaking to the People s Assembly Economic Affairs Committee Monday, Minister of Investment Mahmoud Moheiddin said the Holding Company for Tourism (HCT) has received a letter from Emaar Misr stating the ongoing conflict between the partners over the ownership structure will not affect implementation of the company s Sidi Abdel Rahman project.
The government, he added, will follow the development of Sidi Abdel Rahman and 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.
As of press time, Moheiddin was not available to comment on the nature of the measures that might be taken by the government.
Last week, Emaar Misr Vice Chairman Shafik Gabr said the Capital Markets Authority is now considering a proposal submitted by Emaar Misr to evaluate and list company shares. The Egyptian-UAE partnership, established in March, 2005, has launched construction for several major real estate projects including the development of a $10 billion resort in Sidi Abdel Rahman and a $4 billion residential community on the Mokattam Plateau.
In late February, Emaar Misr finalized its purchase of the Sidi Abdel Rahman land plot for LE 1.2 billion after the amount was paid in full to the HCT 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 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