Monday, Mar 12, 2012
0815 GMT [Zawya Dow Jones]--The public may emerge as the majority shareholder in any merger between Aldar Properties and Sorouh Real Estate, making it unlikely that the new entity will delist from the Abu Dhabi stock exchange, say analysts at Global Investment House. "The merged company is unlikely to delist; a large stake of the new merger will be free float, so that will make it more difficult to delist as shareholders are unlikely to approve this," says Mostafa El-Maghraby, a senior financial analyst at Global. Some 81.4% of Sorouh shares are publicly traded, suggesting that on whatever terms the merger proceeds, it's likely that the proportion of free float will be higher than the 45.5% of Aldar shares that are publicly traded, analysts said. Indeed, El-Maghraby said the public will "most likely" own more than 51% of the merged entity. The largest shareholder in Aldar currently is Mubadala at 49%, followed by the public at 45.4% and ADIC at 5.6%. Other shareholders in Sorouh are Al Joud Investment at 11.63% and ADIC at 6.96%, according to data from Zawya.com. Aldar shares currently +9.8% at AED1.34, while Sorouh also trades +9.8% at AED1.34.
(tahani.karrar@dowjones.com)
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(END) Dow Jones Newswires
12-03-12 0823GMT
