Talaat Moustafa Group Holding (TMGH), Egypt’s largest publicly traded real estate developer, gained the most in more than two weeks after telling investors its legal position is “strong” in a land dispute.
Shares of the Cairo-based company climbed 3.1 percent, the most since July 2, to 4.01 Egyptian pounds at the 2:30 p.m. close in Cairo. The benchmark EGX 30 Index (EGX30) rose 1.6 percent.
The company in a filing to the Egyptian bourse today reassured investors over land it purchased from the government on the outskirts of Cairo for the Madinaty housing and business community.
“It’s highly unlikely Talaat Moustafa would be stripped of the land especially considering the significant infrastructure that has been built,” said Rehab Taha, Cairo-based equities analyst at Prime Securities SAE, who has a buy recommendation on the shares. “Talaat Moustafa is a cyclical stock historically that reacts aggressively to news reports.”
The worst projected outcome of a court battle over the land would be renegotiating with authorities to correct a procedural mistake deemed by a panel of judges to have been made by the government, the company said. The next court hearing in the case is set for Nov. 7, according to the filing.
The panel recommended on July 7 the annulment of a revised contract that allowed the government to sell the land plot to Talaat Moustafa, an opinion the company said wasn’t binding. The shares declined 15 percent since the judges’ recommendation.
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