CAIRO (Reuters) - Egyptian real estate company Amer Group (CA:AMER) plans to split into two companies in an attempt to create more opportunities for its development business and boost trading in its shares.
The company, which owns hotels, restaurants and shopping malls, said in a statement that it would be divided into a development business called Amer Holding Group and a smaller company named Porto Holding.
"The goal of the division is to obtain the true value of the company's shares in the market by shedding light on all activities in a clear manner," Chairman Mansour Amer told reporters.
He said that Amer Holding Group would be responsible for all real estate and hotel investment services, along with its restaurants and commercial centres, while Porto Holding would include all of the company's "Porto" projects, which include several resorts and spas in the Ain Sokhna area on the Red Sea.
Investor relations director Riad Refaat had earlier told Reuters that growth in real estate activity in Egypt had prompted the split to maximise development opportunities and boost its liqudity on the stock exchange.
The company's shares gained 5.5 percent by the close of Sunday trading on the Egyptian stock exchange.
The proposed reorganisation of the company is subject to shareholder approval, Amer said, and a division of assets, liabilities and equity would be made "at book value at the effective date of the split".
Chairman Amer said the group has a portfolio of land under development with a total area of 5.5 million square metres.
(1 US dollar = 7.1500 Egyptian pound)
(Reporting By Ehab Farouk; Writing by Shadi Bushra and Maggie Fick; Editing by David Goodman)