May 18, 2014 / 10:32 AM / in 4 years

UPDATE 1-Egypt's Pioneers says to buy Rooya stake within 3 months

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CAIRO, May 18 (Reuters) - Egypt’s Pioneers Holding plans to finalise its acquisition of 60 percent of real estate company Rooya Group within three months at a cost of 1.23 billion Egyptian pounds ($172 million), its chief executive told Reuters on Sunday.

Pioneers Holding will pay 50 million pounds in cash and the remainder through a capital increase for shareholders in Rooya, according to a company statement sent to the stock exchange on Sunday.

The capital increase will see Pioneers Holding sell 66.725 million shares at 17.63 pounds each, the company said.

“We expect the final agreement of the shareholders of the company, the remaining measures and the issuance of the capital increase within three months,” Chief Executive Waleed Zaki said.

Pioneers specialises in brokerage services, offers market research and investment banking for retail and institutional clients but also has investment arms in real estate, industry and financial services.

Rooya’s sales reached 900 million pounds in 2013, a target it aims to almost double this year. Pioneers is considering floating Rooya on Cairo’s stock exchange once it has acquired the 60 percent stake.

“We are now keen on having all companies that belong to us listed on Egypt’s bourse,” Zaki said by telephone.

Pioneers Holding’s shares were trading at 13.68 pounds at 1006 GMT, up 2.6 percent.

$1 = 7.1126 Egyptian Pounds Reporting By Ehab Farouk and Shadia Nasralla; Writing by Shadia Nasralla; Editing by Andrew Heavens

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