Orascom Development has revealed that negotiations over SODIC’s acquisition of the former’s subsidiary Orascom for Real Estate, which owns the O West project in West Cairo, has stopped.
Sources told Daily News Egypt that the difference in company’s valuation is the reason behind the negotiations halt, especially in light of the fluctuation in the exchange rate of the Egyptian pound against the US dollar, noting that the negotiations have stopped about a month ago.
The sources, who declined to be identified, added that Orascom will complete the expected expansions in the Ost project.
The company said in a statement that, after consultation, Orascom Development and SODIC decided not to proceed with that deal.
Orascom confirmed its full commitment to accelerating the construction pace of the O West project and building an integrated city and a different living experience in the heart of the 6th of October City.
It added that it intends to hand over more than a thousand housing units during the current year and to open the first phase of the O West Sports Club.
The Emirati house, represented by the Sixth of October Development and Investment Company (SODIC), submitted an offer to acquire Orascom Real Estate Development Company, which owns the O West project of Orascom Development-Egypt, at an initial value of EGP 2.5bn.
The profits of Orascom Development Egypt increased by 45.2% over the past year, to reach 1.9bn, compared to a profit of EGP 1.31bn in 2021.
The company’s revenues increased over the past year to reach EGP 10.26bn, compared to revenues of EGP 7.05bn in 2021.
The net profit of the parent company increased over the past year to reach EGP 1.6bn, compared to EGP 1.2bn in 2021.