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Palm Hills Developments, a Cairo-based real estate firm led by Egyptian billionaire Yasseen Mansour, has made a strategic decision to reduce its issued and paid-up capital by EGP120 million ($4.01 million) through the cancellation of 60 million treasury stocks.
The move, which was unanimously approved by the company’s board at its recent extraordinary general meeting (EGM), demonstrates a commitment to streamlining operations and maximizing shareholder value.
The real estate firm is now set to cancel 60 million treasury stocks, each valued at EGP2 ($0.0669) per share, resulting in a total value of EGP120 million ($4.01 million). The action will decrease the firm’s overall issued and paid-up capital from EGP6 billion ($200.7 million) to EGP5.88 billion ($196.7 million).
The Mansour-led real estate firm, in addition to announcing a capital cut, revealed in a separate statement that its board has approved a commutative contract with the International Company for Leasing (Incolease) to enter into a finance lease contract valued at about EGP150 million ($5.02 million).
The agreement with Incolease follows the firm’s acquisition of 576,001 shares worth EGP23.61 million ($1.27 million) in the Egyptian financial services firm in April 2022, thereby increasing its interest in the firm from 15.35 percent to 18.23 percent.
Palm Hills Development is a reputable Egyptian real estate developer with a strong portfolio of active investments in the country. As a subsidiary of the renowned Mansour Group, one of Egypt’s largest conglomerates, the company specializes in the development of residential, commercial, and resort communities.
The real estate firm is led by Mansour, a leading Egyptian billionaire, who holds a significant 5.22-percent stake in the Cairo-based company.
The firm’s profit rose by more than 43 percent at the end of the nine-month period of its 2022 fiscal year, from EGP635.78 million ($26.11 million) in the corresponding period of 2021 to EGP910.86 million ($37.4 million).
Earnings in the third quarter (July to September) exceeded EGP350 million ($14.37 million), up from EGP174.15 million ($7.15 million) in the third quarter of 2021, while revenue increased from EGP1.88 billion ($77.2 million) to EGP2.61 billion ($107.2 million).
