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Palm Hills Expands into Education and Hospitality with Key Acquisitions

Palm Hills Expands into Education and Hospitality with Key Acquisitions

Palm Hills Developments, one of Egypt’s leading real estate developers, has made two significant strategic moves to diversify its portfolio by expanding into the education and hospitality sectors. The company’s Board of Directors recently approved two major acquisitions, positioning Palm Hills for further growth and cementing its influence in key industries beyond real estate.

Entering the Education Sector with Taaleem Management Services

In a pivotal decision, Palm Hills’ Board of Directors has approved the acquisition of Yasseen Mansour’s entire shareholding in Taaleem Management Services. This acquisition involves the purchase of 216.1 million shares at a price of EGP 8.65 per share, bringing the total transaction value to approximately EGP 1.86 billion.

This strategic move marks Palm Hills’ official entry into the education sector, with Taaleem Management Services set to become the company’s educational arm. The acquisition not only diversifies Palm Hills’ core business but also creates synergies between real estate and education, enhancing the value of its overall portfolio. By tapping into the growing demand for quality education in Egypt, Palm Hills is positioning itself to play a key role in the sector’s future development.

Strengthening Presence in Hospitality with Macor Hotels

Alongside its move into education, Palm Hills has expanded its presence in the hospitality sector. The Board approved the purchase of shares in Macor Hotels held by Mansour-Maghraby Investment and Development. This acquisition involves a transaction valued at EGP 175.6 million, increasing Palm Hills’ stake in Macor Hotels to 69.5%.

Macor Hotels operates three major properties in Egypt, located in 6th of October City, Sharm El-Sheikh, and Ismailia, with a total capacity of 746 rooms. By increasing its stake, Palm Hills reinforces its hospitality footprint, aligning with Egypt’s growing tourism and hotel industry. This move signals the company’s intent to enhance its investments in the hospitality sector, leveraging its real estate expertise to further strengthen its market position.

Optimizing Share Structure through Capital Reduction

In a separate effort to streamline its share structure, Palm Hills’ Board of Directors has also approved a capital reduction plan. The company will cancel 61.68 million treasury shares in accordance with Article 48 of the Listing Rules, aimed at optimizing its balance sheet. Palm Hills’ Board has endorsed the necessary disclosure forms. It has authorized the Chairman and Managing Director to convene an Extraordinary General Assembly to complete the capital reduction and amend the company’s Articles of Association.

Additionally, Palm Hills plans to repurchase up to 88.2 million treasury shares, representing a maximum of 3% of its issued shares. The buyback will be financed from the company’s resources and executed through the open market, further solidifying its commitment to its shareholders.

Strategic Moves Aligned with Long-Term Growth

Palm Hills’ acquisitions in education and hospitality, along with its capital optimization initiatives, represent strategic moves designed to broaden its business scope and reinforce its market presence. By diversifying into sectors closely linked to real estate development, such as education and hospitality, Palm Hills sets a foundation for long-term growth and sustainability. These decisions signal the company’s readiness to adapt to evolving market demands and its ambition to expand its influence across multiple industries in Egypt.

Both acquisitions are currently pending approval by Palm Hills’ General Assembly, which will play a key role in determining the next steps in the company’s strategic expansion.

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