Fact Sheet: Talaat Moustafa Group Holding

Who Owns Cairo: Case Study Companies

Overview

Full Name: Talaat Moustafa Group Holding SAE (Reuters Code TMGH.CA)

Established: 2007 (As a holding company of pre-existing companies)

Listed on EGX: 2007

Scope and activities: The company engages in the establishment of companies that issue securities, or raises their capital. It also establishes and develops hotels, touristic and residential projects in Egypt. [1]

Company Vitals:

How much land does TMGH own in Cairo?

Under the de jure method (See Methodology), TMGH indirectly owns 16,341 acres in Cairo (See Appendix A below). At 16,442 acres, its ownership doesn’t change much under the control method as it has rarely been involved in co-development deals with other companies. It has however pioneered the co-development model with NUCA, buying its significant land plots in Cairo through in-kind payment (finished units) agreements with NUCA, meaning that land payments do not represent an upfront burden for it. This has been the cause of legal dispute, where a court ruling nulled the original land contract for Madinaty, forcing NUCA and TMGH to sign a new contract with clearer payment terms better reflecting the value of the land.[2]  In 2021, TMGH had the largest landbank of the case study companies, however despite its size, the landbank was mostly acquired more than a decade ago, specifically in 2005, when over half of its current land bank was allocated (Figure 1).

Figure 1: TMGH landbank accumulation analysis – Control Method 2002-2021 (Acres). Sources: See Appendix A

Who Owns TMGH?

The Talaat Moustafa Group’s largest shareholder is TMG for Real Estate and Touristic Investments, a company jointly held by the Egyptian Talaat Moustafa Family and the Saudi Bin Laden family (Figure 2). With stakes through another company brothers Tarek, Hisham and Hany ultimately own 34% of TMGH’s stock. Hisham Talaat Moustafa has been group CEO since the 2017, and has also served as a member of the Shura Council (Upper House). Brother Tarek Talaat Moustafa is group Chairman since 2008 and a former member of parliament.

The second largest shareholder is the Saudi Bin Laden family, famous for their large construction interests in their home country through the Saudi Binladen Group. In Egypt, brothers Yehia and Omar Bin Laden have various real estate investments, owning 17% of TMGH through an Egypt based company – with the Talaat Moustafa family, and the Cayman Islands. The third largest shareholder is another Saudi family, that of Abdelmoniem Alrashed, owning 7% of the group through a UAE based company. The remaining identifiable owners are mostly investment funds, led by the Norges Bank who owns 3.3% of TMGH’s shares.

Figure 2: TMGH shareholding structure according to the UBO method as of 2021 Q4 (See Appendix B and Methodology)

Investor Nationalities

Egypt based investors owned less than half of the company’s shares under the tax resident (TR) method (See Methodology), with the second largest group being investors of unknown nationalities: free float investors with small holdings (Figure 3). In third place is Saudi Arabia with 8.6% of the shares, followed by the Cayman Islands with an equal percentage, and in close fifth place the UAE with 7%. Funds based in the USA and Norway, owned the remaining portion.

Shifting the ultimate beneficial owner (UBO) method, leaves Egypt in first place with 46% of the shares, while investors of unknown nationalities grow to almost a quarter o the shares as other listed companies and funds are added to the group (See Methodology). Saudi Arabia remains in third place, though balloons to near one quarter of the shareholdings as UBOs of Cayman Islands and UAE companies are added. The Government of Norway’s Norges Bank is the fourth largest owner at 3.3% of the shares.

Figure 3: TMGH shareholding by nationality under the TR and UBO methods

Investor Types

Under the UBO method, families made it the largest portion of investors, holding almost 60% of TMGH (Figure 4). Unidentifiable smallholders on the EGX free float represented the second largest group at a third of the company. SOEs were the third largest shareholder with 4% of shares – mostly through the Norges Bank, while private and listed companies owned the remaining 4%.

Figure 4: TMGH shareholding by investor type – UBO

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Appendix A: Landholding Information

Appendix B: Shareholding Information

Direct Shareholding:

Indirect Shareholding:

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