The board of directors of Pioneers Holding Company for Financial Investment approved the fair value (FV) studies conducted by the financial advisor Fincorp for five of its subsidiaries listed on the Egyptian Exchange (EGX).
Pioneers Holding Company aims to increase its stakes in these five companies to 90%, according to a bourse disclosure on Monday.
The FV of shareholders' equity of these companies are set as follows:
- Pioneers Holding Company: EGP8.78 billion, or EGP9.38 per share.
- Giza General Contracting and Real Estate Investment Co: EGP 670.5 million, or EGP 2.29 per share.
- United Company for Housing and Development: EGP 2.12 billion, or EGP 7.52, a share.
- Elsaeed Contracting and Real Estate Investment Company: EGP 956 million, or EGP 1.25 per share.
- El Kahera Housing: EGP 2.68 million, or EGP 29.88 per share.
- Electro Cable Co – Egypt: EGP 2.32 billion, or EGP 3.27 per share.
The stock swap ratios are set at 4.099 shares in Giza General Contracting for one share in Pioneers Holding, 1.248 shares in the United Company for Housing and Development for one share in Pioneers Holding, 7.47 shares in Elsaeed Contracting and Real Estate Investment for one share in Pioneers Holding, 0.31 share in El Kahera Housing for a share in Pioneers Holding, and 2.872 shares in Electro Cable Co for one share in Pioneers Holding.
Moreover, the board also recommended issuing shares at a nominal value of EGP 5 apiece as well as an issuance premium of EGP 4.38 per share to increase the issued capital by a maximum amount of EGP 287.98 million.
Previously, the CEO of Pioneers Holdings, Waleed Zaki, revealed that the company decided to increase its stakes in five of its listed subsidiaries to 90% through share swap.
It is noteworthy that during the first nine months of 2019, Pioneers Holding Company logged a net profit of EGP 1.23 billion, compared to EGP 821.6 million in the year-ago period, including minority shareholders’ rights.