The financial analyst senior of Arab African International Securities Brokerage’s real estate business, Mahmoud Gad, confirmed in an interview with “Al Arabiya” that the 61% stake in Sixth of October Development and Investment Company – SODIC, listed on the Egyptian Stock Exchange, is “in the hands of 6 owners”.
Gad explained that the current UAE offer “Aldar Properties”, at a value of 20 pounds per share in “SODIC” will be discussed by these six shareholders and others, but the relationship in their hands is impressive, noting that This price is compared with previous valuations between 22 and 23 pounds, which have decreased in the last period.
And he talked about the value-based appraisal of land and projects at SODIC, and this valuation varies from company to company in based on the monetization rate and management strategy, referring to the takeover offer submitted for 51% and a maximum of 90% of the capital of SODIC, whose capital structure is owned by 6 shareholders for a share, plus of half and the final decision to accept the offer at this price will be in the hands of these 6 shareholders.
Gad has indicated the average expert valuations at £ 20, but returning to the trading levels of the “SODIC” stock, we will find that the stock traded above £ 20 twice in the first phase from June 2007 to June 2008 and the second time from March to October 2018, while in the rest of the Times the stock traded below £ 20.
He said that if the shareholders’ point of view sees that this value is fair, he could take advantage of the offer presented and use the cash. in other shares that are traded at a large discount to their fair value in the Egyptian market in this moment.
It also refers to the anticipation of the approval by the supervisory authorities, and the approval of the shareholders, who look at different aspects, in first, the average cost of the share price, e in second, the shareholder’s view of the fair value of the stock.
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