South Valley readies $2.7bn to buy Cairo developer
Cairo, May 2, 2010
Shareholders in Egypt's South Valley Cement have approved a 15 billion Egyptian pounds ($2.7 billion) capital increase to buy top developer Golden Pyramids Plaza.
Golden Pyramids Plaza is the owner of the Citystars mega-mall in Cairo.
Besides the mega-mall, Golden Pyramids Plaza also has other tourism and real estate projects in Egypt.
'In order to acquire Golden Pyramids and its related companies, we will increase our capital from 5 billion to 20 billion (pounds),' said Tamer Abdel Rahman, the firm's investor relations director.
'The goal is to diversify our work, to have investments in real estate and tourism projects,' Abdel Rahman said. 'We want to enter a new market.'
Golden Pyramids has a fair value of 15 billion pounds, he said. The capital increase was approved at an extraordinary shareholders meeting on Thursday.-Reuters