Cairo – Mubasher: Rowad Tourism Company – Rowad announced that it has commissioned Keys Financial Consulting Company to study the fair value of assets owned by Target Real Estate Investment Company, which it is about to acquire.
And the company confirmed in a statement released today, Sunday, that previous ratings will not be taken into consideration.
For its part, the Egyptian Real Estate Group said it decided it was satisfied with the report’s guidanceThis will be released for the benefit of the tourism pioneers, to disregard any previously released valuations and to terminate any assignment they have issued to any of the financial advisory firms.
And the General Authority for Financial Supervision had decided to halt trading in the shares of Egyptian Real Estate Group Company and Pioneers of Tourism Company – Rowad, until the completion of its investigations into discrepancies in the disclosures published by both companies regarding the acquisition of some real estate assets of a company owned by some members of the Board of Directors, their management, which raises a state of uncertainty.
The Financial Supervisory Authority has confirmed that this is a violation of the disclosure provisions and rules set out in the Capital Markets Act and its implementing regulations.
The beginning of the crisis dates back to when the financial control decided to oblige Al-Masria Real Estate and Pioneers of Tourism to appoint an independent financial consultant registered in the authority’s records to evaluate the real estate assets owned by the Target Real Estate Investment Company, which will be acquired by the two companies. As a result of a significant difference in previously prepared studies.
He said that in light of the review of fair value studies prepared by Castle Financial Consulting Company and Solid Capital Financial Consulting Company, it was found that the real estate appraisals prepared involved the same 15 assets, with a significant difference in real estate appraisal values between the two studies.
He added that the valuation received by Solid Capital, commissioned by Egyptian Real Estate Group, is 68.76% lower than the one received by Castle Financial Consulting, commissioned by Pioneers of Tourism.
The Egyptian Real Estate Group Company, before the issuance of the control report, had decided to suspend Solid Capital for Financial Consulting, from carrying out the evaluation assignments, upon communication to the authority of the evaluation report.
After the decision of the financial control, Al-Masria Real Estate commissioned Fenby Financial Consulting Company to evaluate the assets to be acquired, while Rowad Tourism decided to entrust Webek Financial Consulting.
On October 12, Pioneers of Tourism announced the apology of Webc Consulting Company and that negotiations are underway with a group of specialized companies. .
This was deemed incorrect by the Financial Control Authority – according to the statement – and the independent financial advisor refused the assignment.
On November 8, Pioneers of Tourism sent a letter to the Egyptian Stock Exchange containing the results of the fair value valuation report of real estate assets prepared by Webic Consulting, despite having previously published an apology for the assignment.