Aldar-ADQ Consortium Submits Mandatory Tender Offer For Up To 90% Stake In Egx-listed Real Estate Company Sodic

Press release
Published September 14th, 2021 - 09:51 GMT
Aldar-ADQ Consortium Submits Mandatory Tender Offer For Up To 90% Stake In Egx-listed Real Estate Company Sodic
All cash offer of EGP 20.0 per share to SODIC shareholders values the company at EGP 7.1 billion (USD 453 million)
Highlights
A consortium comprising Aldar Properties (“Aldar”) and ADQ has submitted for approval by the Egyptian Financial Regulatory Authority

A consortium comprising Aldar Properties (“Aldar”) and 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 S.A.E. (“SODIC” or “the Company”) (EGX: OCDI.CA).

The submission on 14 September 2021 is in accordance with Chapter XII of the Executive Regulations of the Egyptian Capital Market Law No. 95 of the Year 1992.

The MTO to SODIC shareholders follows a rigorous due diligence process carried out by the consortium, which is owned 70% by Aldar and 30% by ADQ, one of the region’s largest holding companies. 

The consortium is offering a purchase price of EGP 20.0 per share, valuing the Company at EGP 7.1 billion (USD 453million). This represents a premium of 18% over the three-month volume-weighted average price (‘VWAP’) of EGP 16.88, and a premium of 21% over the six-month VWAP of EGP 16.50.[1]

The consortium believes that its final offer of EGP 20.0 per share represents a compelling liquidity event and value proposition for SODIC’s shareholders, reflecting the Company’s robust fundamentals and brand equity.

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.

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.

Background Information

Aldar Properties

Aldar Properties PJSC, is the leading real estate developer in Abu Dhabi, and through its iconic developments, it is one of the most well known in the United Arab Emirates, and wider Middle East region.

From its beginnings in 2005 through to today, Aldar continues to shape and enhance the urban fabric of the UAE’s Capital City in addition to other key areas of the Emirate of Abu Dhabi.

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