Heliopolis Company for Housing and Development (HHD) has received four offers for the management of the company after nearly seven months of discussions and inquiries about management tasks.
Chairperson of HHD Hany El-Deeb said the official offers were presented by the Sixth of October for Development and Investment (SODIC), Palm Hills Development, BPE Partners, and Dar Al-Arkan Real Estate Development. The bid envelopes will be opened before the applicants, he added.
He told Daily News Egypt that his company would take 30-45 days to study the offers from technical and financial perspectives, expecting to announce the winner bidder sometime in April, which in parallel will purchase 10% of the company’s shares..
Moreover, HHD may be floated on the Egyptian Exchange after selecting a strategic partner to manage the company., he noted.
HHD said last week it held a lengthy meeting to answer the applicants’ inquiries about management tasks.
Upon the request of an applicant, the deadline for receiving offers was extended from 21 January to 23 February.
HHD said the bidding will not be based on the company’s stock price, but rather on some indicators of profitability, and therefore the bidding is up to the applicants.
The move includes offering up to 25% of the company’s shares, owned by the Holding Company for Construction and Development, , as part of the government IPO programme, and a 10% stake to a private equity strategic investor that specialises in real estate development or an alliance between a strategic investor and a developer.
Naeem Research recommends the purchase of HHD shares at a target price of EGP 40.4 per share.
HHD aims to achieve 168% annual growth in revenues to EGP 3.12bn in the fiscal year 2019/20, comprising EGP 2bn from selling 190-feddan land in New Heliopolis, a minimum of EGP 188m from Sodic East project, EGP 785m from selling 583 housing units, and EGP 31.7m from leasing assets and service revenues.