Leading UAE developer Aldar Properties (Aldar) said its consortium with ADQ has submitted for approval by the Egyptian Financial Regulatory Authority (the FRA) an all-cash mandatory tender offer (MTO) for up to 90% and a minimum of 51% of the outstanding share capital of The Sixth of October for Development and Investment (Sodic).
One of the region’s largest holding companies, ADQ boasts a diverse portfolio of major enterprises spanning key sectors of Abu Dhabi’s non-oil economy.
The submission made today (September 14) is in accordance with Chapter XII of the Executive Regulations of the Egyptian Capital Market Law No. 95 of the Year 1992, said the statement from Aldar.
The MTO to Sodic shareholders follows a rigorous due diligence process carried out by the consortium, which is owned 70 per cent by Aldar and 30 per cent by ADQ.
The consortium is offering a purchase price of E£20 per share, valuing the company at E£7.1 billion ($453 million). This represents a premium of 18% over the three-month volume-weighted average price (VWAP) of E£16.88, and a premium of 21% over the six-month VWAP of E£16.50.
The Aldar consortium believes that its final offer of E£20 per share represents a compelling liquidity event and value proposition for the Egyptian real estate group’s shareholders, reflecting its robust fundamentals and brand equity.
According to Aldar, an approval to launch the MTO by the FRA will be followed by a validity period of 10-30 working days, subject to the discretion of the FRA, for Sodic shareholders to respond to the MTO. Thereafter, the MTO would need to be executed within no more than five working days.
This proposed acquisition of a majority stake in Sodic is a part of Aldar’s overall expansion strategy into the attractive Egyptian real estate market, with Aldar currently assessing several opportunities, it stated.
Headquartered in Cairo and listed on the Egyptian Exchange (EGX), SODIC is one of Egypt’s leading real estate companies with a strong track record in developing high-quality residential, commercial, and retail projects.
The company is well-respected for its strong management team, high standards of corporate governance, valuable brand, and approach to creating vibrant communities.-TradeArabia News Service