Aldar – ADQ Consortium To Become New Majority Shareholder of SODIC

Press release
Published December 7th, 2021 - 04:39 GMT
Aldar – ADQ Consortium To Become New Majority Shareholder of SODIC
SODIC
Highlights
A majority of Sixth of October Development & Investment Company S.A.E. “SODIC” (the “Company”) shareholders have agreed to sell their shares, representing 85.52% of the company’s issued share capital

A majority of Sixth of October Development & Investment Company S.A.E. “SODIC” (the “Company”) shareholders have agreed to sell their shares, representing 85.52% of the company’s issued share capital, to an Abu Dhabi investor consortium (the “consortium”) that is 70% controlled by Aldar and 30% by ADQ, according to an announcement by the Egyptian Stock Exchange (EGX) earlier today. 

Following the successful conclusion of a mandatory tender offer, the consortium will acquire 304,628,772 of the company’s shares for a cash price of EGP 20 per share, valuing SODIC at over EGP 7.1 billion and implying a transaction value of some EGP 6,092,575,440 billion. 

Aldar is one of the UAE’s largest real estate development and asset management companies by market value and the market leader in Abu Dhabi. The company is responsible for the development of iconic real estate across Abu Dhabi, including residential, commercial, and retail assets on Yas Island, the world-renowned leisure, shopping, and entertainment centre, and Saadiyat Island, the capital’s up and coming lifestyle and cultural destination. Aldar has a diverse range of business interests, including strategic investment, fee-based development management, schools, hospitality, leisure and entertainment, facilities management and more. A well governed and transparent company, Aldar prides itself on being customer centric and innovative with a commitment to corporate governance, operational excellence, sustainable practices, and talent development.

ADQ is one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy. “The transaction provides SODIC’s shareholders with immediate and substantial cash value reflecting the company’s solid financial position and strong brand equity,” said Magued Sherif, SODIC’s Managing Director. 

“The Aldar-ADQ consortium brings financial strength, a solid track record in institutional real estate investment, development of premium quality communities and destinations, and property management. We are pleased to welcome Aldar and ADQ as strategic investors and key shareholders in SODIC. We want to thank our existing shareholders and investors for their trust in SODIC and its management team to deliver sustainable growth and returns. We are excited to work with Aldar and are looking forward to starting a new chapter in our growth story,” Magued added.

Aldar had identified Egypt as a priority market for international expansion, demonstrating the company’s belief in Egypt’s potential and the macro fundamentals driving the real estate sector. Becoming the majority shareholder in one of the country’s leading real estate developers indicates Aldar’s commitment to operate in Egypt and its intention to continue to invest in the country over the long term.  

In late 2019, ADQ launched a USD 20 billion joint strategic platform with The Sovereign Fund of Egypt to invest in several key sectors such as healthcare and pharma, utilities, food and agriculture, real estate and financial services. This transaction is ADQ’s latest investment in Egypt.

 

Background Information

SODIC

At SODIC, we aim to continuously outdo ourselves in all aspects of our work. SODIC has graduated from simply developing a community, to becoming a society. Moving from real estate, to real societies.

We believe in the essence of a true “society“, in the power of art, sports, culture, sustainability and knowledge, to name a few. SODIC is a place maker. Building on our vision of Human Developments, we aspire to create holistic communities that reflect credibility, innovation and value, for all our stakeholders.

The SODIC Society - the society everyone wants to be a part of.

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