MNHD Shareholders Reject SODIC’s Request for Due Diligence

Madinet Nasr for Housing & Development (“MNHD” or “the Company”), one of Egypt’s premier urban community developers, announced today that a General Assembly of the Company’s shareholders has voted to reject a request by Sixth of October Development & Investment Company (SODIC) to perform due diligence on MNHD. This comes following MNHD’s receipt on 5 July 2022 of a nonbinding offer from SODIC for an acquisition of up to 100% of MNHD’s shares.

The decision at the General Assembly was in line with the Board of Directors’ recommendation regarding the nonbinding acquisition offer presented by SODIC in July. The Board made its decision in light of its conviction that SODIC’s offer did not reflect the real value of MNHD’s business, including the Company’s highly attractive asset base, land bank, strategic capabilities, and growth prospects.

“Throughout this process our priority has been to deliver the best outcome for our shareholders,” said Abdallah Sallam, CEO of MNHD. “The shareholders’ decision today has demonstrated the long-term value that they see in MNHD. We continue to have great confidence in MNHD’s future. In just the past few months, the management team here at MNHD has already outlined a compelling new strategy, driving significant growth and enhancing our corporate performance.”

“Our gross contracted sales for the first six months of 2022 were up by more than double compared to the same period of 2021,” Sallam continued, “surpassing the EGP 3.3 billion mark. Deliveries also more than doubled over the same period. In Q2 2022 we delivered our all-time record for sales in a second quarter. Meanwhile, over this July alone, MNHD booked a record figure for reservations in a single month. As we prepare several new launches for the coming period, we believe that the Company will continue to outperform the strong results that we’ve already achieved.”