A consortium comprising Abu Dhabi’s Aldar Properties and ADQ, one of the region’s largest holding companies, submitted an all-cash mandatory tender offer to buy up to 90 per cent of the share capital of Egypt’s The Sixth of October for Development and Investment.
The partnership is offering a purchase price of 20 Egyptian pounds per share, valuing the company at 7.1 billion pounds ($453million), Aldar said in a statement on Tuesday. This represents a premium of 18 per cent over the three-month volume-weighted average price of 16.88 pounds and a premium of 21 per cent over the six-month VWAP of 16.50 pounds.
“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,” Aldar said.
Headquartered in Cairo and listed on the Egyptian Exchange, Sodic is one of Egypt’s top real estate companies with a number of residential, commercial and retail projects.
The offer to Sodic shareholders follows a rigorous due diligence process carried out by the consortium, which is 70 per cent owned by Aldar and 30 per cent by ADQ.
The final price “represents a compelling liquidity event and value proposition for Sodic’s shareholders, reflecting the Company’s robust fundamentals and brand equity,” Aldar said. The offer is subject to approval by the Egyptian Financial Regulatory Authority.
Aldar Properties, which is behind mega projects such as the Formula One race circuit on Yas Island, reported a 7.6 per cent jump in second-quarter profit, thanks to higher revenue and rental income as the UAE’s property market continues to recover from the coronavirus pandemic.
Net profit attributable to owners of the company for the three-month period to the end of June climbed to Dh520m ($142m) while revenue and rental income rose more than 9 per cent annually to about Dh2.2 billion.
Aldar also revamped its business and adopted a new operating model with a parent company overseeing its core development and investment businesses.
Aldar Development, which is responsible for building out the company’s 75 million square metre land bank, will have three subsidiaries – Aldar Projects, Aldar Ventures and Aldar Egypt, it said earlier this year.
Sodic booked a record 7.4bn pounds in sales last year as it handed over 1,162 units, it said in January. The company’s developments include the mixed-use Sodic Westown, Eastown, Kattameya Plaza and Caesar schemes, among others.