Aldar offer for a majority stake in EGX-listed real estate company SODIC

BBN Report

Eyes to acquire minimum 51pc of outstanding share capital

ABU DHABI/March 14-2021: Aldar Properties has submitted a preliminary non-binding offer for the potential cash acquisition of a majority stake in Egyptian real estate company, Sixth of October for Development and Investment Company (SODIC).

The offer will be implemented by a consortium controlled and majority owned by Aldar. The offer for a minimum of 51 per cent of the outstanding share capital of SODIC is subject to due diligence, applicable regulatory approvals and other conditions. Following a satisfactory outcome of the due diligence process, the Aldar-led consortium said it intends to make a mandatory tender offer in accordance with applicable laws and regulations. In its offer to the Board of Directors of SODIC, Aldar stated that the indicative purchase price offered would be in the range of EGP18 to 19 per ($1.152 to $1.216) per share.

Company valuation

The mid-point of the range values the company at EGP6.6 billion ($420 million) and represents a 14 per cent premium to SODIC’s closing price on March 11, 2021 and premier of 18 per cent, 29 per cent and 49 per cent respectively over the three-month volume weighted average price (VWAP) of EGP15.64, the six-month VWAP of EGP14.37 and the 12-month VWAP of EGP12.42.

Aldar believes that its offer represents a compelling liquidity event and value proposition for SODIC’s shareholders, reflecting the company’s robust fundamentals and share price performance over the last 12months.

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.

Two business models

Aldar announced a new operating model in January that focuses on sustainable growth across two business units: Aldar Investment and Aldar Development.

The Aldar Development business has a mandate to expand its operations into the Egyptian market to pursue attractive long-term opportunities, particularly in the development of integrated mixed-use communities.

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