UAE's Aldar-ADQ consortium offers to acquire up to 90% of Egypt's SODIC

The offer is for a minimum of 51% and up to 90% of the outstanding share capital of the EGX-listed company and values SODIC at $453mln

  
Headquarters of Aldar is seen in Abu Dhabi, United Arab Emirates, December 24, 2018. Reuters/Hamad I Mohammed

Headquarters of Aldar is seen in Abu Dhabi, United Arab Emirates, December 24, 2018. Reuters/Hamad I Mohammed

REUTERS

A consortium comprising Aldar Properties and Abu Dhabi holding company ADQ has made a mandatory tender offer (MTO) for up to 90 percent stake of EGX-listed real estate company SODIC.

The offer is for a minimum of 51 percent of the outstanding share capital of The Sixth of October for Development and Investment Company (SODIC), and is part of Aldar’s expansion strategy into the Egyptian real estate market, with more opportunities currently being assessed.  

The consortium, which is 70 percent owned by Aldar and 30 percent by ADQ, said it was making a final offer of EGP 20 ($1.27) per share, valuing the company at EGP 7.1 billion ($453 million).

This represents a premium of 18 percent over the three-month volume-weighted average price (VWAP) of EGP 16.88, and a premium of 21 percent over the six-month VWAP of EGP 16.50, the two companies said in a press release.

“This proposed acquisition of a majority stake in SODIC is a part of Aldar’s overall expansion strategy into the Egyptian real estate market, with Aldar currently assessing several opportunities,” the press release said.

SODIC is headquartered in Cairo and listed on the Egyptian Exchange (EGX).

(Writing by Imogen Lillywhite; editing by Daniel Luiz)

imogen.lillywhite@refinitiv.com

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