A consortium of Aldar Properties, Abu Dhabi-based property development company, and ADQ, one of the region’s largest holding companies, submitted an all-cash mandatory tender offer to buy up to 90 percent of the share capital of Egypt’s Sixth of October for Development and Investment Company (SODIC).
The consortium is offering a purchase price of $1.2 per share, valuing the company at $453 million, Aldar said in a statement. This represents a premium of 18 percent over the three-month volume-weighted average price (VWAP) of $1.08 and a premium of 21 percent over the six-month VWAP of $1.05.
“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.
The offer to SODIC shareholders follows extensive due diligence carried out by the consortium, which is owned 70 percent by Aldar and 30 percent by ADQ.
SODIC, headquartered in Cairo and listed on the Egyptian Exchange, is one of Egypt’s top real estate companies with a number of residential, commercial and retail projects.
“The consortium believes that its final offer of $1.27 per share represents a compelling liquidity event and value proposition for SODIC’s shareholders, reflecting the company’s robust fundamentals and brand equity,” Aldar said in a statement. The offer is subject to approval by the Egyptian Financial Regulatory Authority.
Aldar Properties, reported a 7.6 percent jump in second-quarter profit due to higher revenue and rental income as the UAE’s property market continues to recover from the coronavirus pandemic. SODIC recorded $470 million in sales last year as it handed over 1,162 units.