The Clap:
Emaar Misr’s board of directors has approved the feasibility study for a capital increase of 3.19 billion shares to complete the acquisition of Albro North Coast for Developments and Sky Tower for Real Estate Development, according to an EGX statement.
First up, Albro:
Through a share swap, Emaar Misr wants to purchase up to an extra 75% stake of Albro from shareholders, giving it complete control over the business. Emaar will now hire an independent financial advisor to determine the swap ratio.
Claps class:
A share swap is a way to fund a company acquisition, where the acquiring company pays using its own shares for the equity in the other company, rather than using cash.
Secondly, Sky Tower:
Emaar Misr hopes to buy a quarter of Sky Tower in an all cash transaction, with the possibility of acquiring the remaining 75 % through a share swap after the planned share issuance.
