The Clap:
Emaar Misr offers an initial non-binding offer for 2 real estate players
Offer 1:
Emaar decided to submit an offer for 75% of Elpro North Coast through a stock swap agreement, which would bring its total ownership in the company to 100% after the capital increase.
Offer 2:
It also decided to submit an offer for 25% of Sky Tower cash, with the option of buying the remaining 75% through another and stock swap agreement.
Claps Class – stock swap & capital increase:
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.
Emaar Misr is going to do a capital increase, which allows it to issue more of its own shares, to supply the needed shares for the stock swap agreement.
Profits Pass Revenues?:
Emaar’s Q1-24 earnings show a 157% YoY increase in net profits to EGP 5.732 billion, even though revenues fell by 15.4% YoY to EGP 1.863.
