Dubai – Mubasher: The UAE’s UPP Capital Investment, a subsidiary of Dubai-listed Union Properties, is looking to subscribe to the capital hike of Egypt’s Palm Hills Development Company.
UPP Capital Investment is mulling over the capital rise subscription to generate a strategic investment return for its shareholders, the Emirati real estate firm said in a statement to the Dubai Financial Market (DFM).
Union Properties’ arm currently owns a 16.63% stake in the Egyptian developer.
In September, Palm Hills’ board agreed to raise issued capital by EGP 1.54 billion to EGP 6.15 billion from EGP 4.6 billion by inviting major shareholders to a subscription through issuing 769.6 million shares at par value of EGP 2, in addition to the expenses of issuance.
Palm Hills Development reported a 25.9% year-on-year rise in consolidated profits for the first half of 2018 due to a growth in revenues.
Net profit amounted to EGP 439.9 million during H1-18, versus EGP 349.3 million in the year-ago period, including minority shareholders’ rights.
