Table of Contents
Key Points
- Palm Hills Developments plans to acquire a 29.6% stake in Taaleem for EGP1.9 billion ($39.3 million), diversifying into Egypt's private education sector.
- Pending approval, Palm Hills will buy 216.1 million shares from Mansour at EGP8.65 ($0.18) each, enhancing his stake in Taaleem to 18.3%.
- Under Mansour's leadership, Palm Hills continues to deliver impressive financial results and maintain its market dominance.
Palm Hills Developments, led by Egyptian billionaire Yasseen Mansour, is poised to acquire a 29.6 percent stake in Taaleem Management Services Company for EGP1.9 billion ($39.3 million). This acquisition underscores Palm Hills' strategy to diversify its portfolio beyond its core real estate business and tap into the burgeoning private education sector in Egypt.
Pending regulatory approval, Palm Hills plans to buy 216.1 million shares from Yasseen Mansour for EGP8.65 ($0.18) each. This follows Mansour's acquisition of an additional stake in Taaleem, increasing his holding to 18.3 percent after purchasing shares worth EGP505.6 million ($10.46 million). This strategic investment aligns with Mansour's goal to enhance Egypt's private university network and expand educational opportunities in the country.
Aggressive growth strategy: Expanding horizons in hospitality and beyond
Palm Hills' acquisition of Taaleem is part of its broader growth strategy, which includes plans to boost its stake in Macor Hotels to 69.8 percent. The form aims to acquire a 9.5 percent interest for EGP175.58 million ($3.63 million), strengthening its presence in the hospitality sector.
Recently, Palm Hills secured a record EGP10.3 billion ($212.3 million) loan, the largest ever for a private sector company in Egypt's real estate market. The funds will support the development of Badya, Egypt's first smart city. Additionally, it plans to invest EGP22 billion ($455.1 million) in construction activities in 2025, reflecting its commitment to growth in the real estate sector.
In a strategic move, Palm Hills has proposed a capital reduction plan that includes writing off 61.68 million treasury shares and acquiring 88.2 million shares as treasury stock. This plan, representing up to 3 percent of issued shares, will be presented at an upcoming extraordinary general meeting.
Financial performance under Yasseen Mansour's leadership
As Egypt's second-largest listed real estate firm and a subsidiary of Mansour Group, Palm Hills Developments has consistently demonstrated strong financial performance, solidifying its market leadership. Under Yasseen Mansour, who holds a 10.17 percent stake in the company, Palm Hills has capitalized on the robust demand in Egypt's real estate market.
In the first half of 2024, Palm Hills reported revenues of EGP10.94 billion ($225 million), a remarkable 58 percent increase from EGP6.92 billion ($142.6 million) during the same period in 2023. This growth was primarily driven by increased unit sales and successful project handovers, as the company continued to leverage Egypt's thriving real estate environment.
Moreover, Palm Hills’ asset base expanded by 27.9 percent, reaching EGP 95.03 billion ($1.96 billion) in the first half of 2024, further solidifying its position as one of Egypt’s largest and most influential real estate groups.
