Egyptian real estate developer Amer Group will split into Amer Holding and Porto Holding, the company's board of directors announced in a press release to the Egyptian stock exchange on Sunday.
“Amer Group has managed to prove its existence with its Porto projects. Their success and maturity necessitate that the Porto projects turn into a standalone company so people can see their actual value,” Mansour Amer, chairman of the group, said at a press conference on Sunday.
The new companies will each hold the same number of shares but at different values, estimated at two thirds for Amer Holding and a third for Porto Holding. The Egyptian Financial Supervisory Authority has already approved the move, said Amer.
The companies will split their assets and obligations based on the existing value of the company balance sheets at the date of the split.
Egypt’s CI capital and Grand Thornton are Amer Group’s financial and technical consultants for the split, he said.
Amer Group was established in December 2007. It owns hotels, restaurants, malls, and administrative and residential units.
Porto Holding will now manage most of the Porto projects, including those in Morocco, Syria and Egypt, tourist projects, as well as new projects in greater Cairo.
Amer Holding plans to expand existing operations in restaurants, education, healthcare, hospitality, malls and real estate sector.
Amer noted that the split allows the company to focus on projects other than Porto projects, which already generate 25 percent of revenues.
The group’s shares climbed 4.72 percent on Sunday to record LE1.34 per share.
The company reported a sharp increase in net profits for the third quarter of 2014 to register LE172.6 million, compared to LE2.2 million in the same period last year, according to Reuters.