(MENAFN- Daily News Egypt) Egyptian Financial Supervisory Authority (EFSA) refused on Sunday the fair value study for Reacap Financial Investments introduced by Fincorp Investment, according to a press release.
The authority said that Reacap has yet to introduce documents to decide the new fair value for the stock.
Fincorp Investment has set Reacap fair value at EGP 11.09 per share.
Last week, the authority said that Wadi Degla shareholders should obtain its prior approval to own shares in Reacap Financial Investments.
The watchdog added that this move aims to maintain the stability of non-banking financial markets and the efficiency of markets, as well as to protect the rights of shareholders.
On 8 August, Reacap's board agreed on increasing the amount of issued capital, and the increased shares will be issued in return with the acquired shares by 99.99% of Wadi Degla Holding's shareholders.
The chairman of Reacap's board has been assigned in the extraordinary general meeting (EGM) to study the issued and paid capital share.
Naeem Holding owns 56% of Reacap's shares, with investments equivalent to 19.5% of Naeem's total investments.
Under the deal, Wadi Degla will have a 74% stake in the new entity, while Naeem Holding will have 26%.
Reacap's capital share reached EGP 500 million in the Egyptian Exchange (EGX), at a par value of EGP 10.09 per share.
Naeem Holding owns 56% of Reacap's shares, with investments equivalent to 19.5% of Naeem's total investments, according to the statement.
The merger, if approved, is expected to be completed by the end of the year, with the new board to decide on whether to retain the name Reacap Financial Investments or not.
Wadi Degla Chairman Maged Helmy said following announcing the deal the real estate portfolio of the new company would stand at 6 million square metres, with 2 million of that still undeveloped and 4 currently under development.
Meanwhile, Reacap's stock shrugged off the fair value study refusal and hovered around its highest level in six years during Sunday's trading session.
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