Emirati consortium submits compulsory purchase offer to acquire stake in SODIC

The alliance of Aldar Properties listed on the Abu Dhabi Securities Exchange and Abu Dhabi Developmental Holding Company (ADQ) presented a request to the Financial Regulatory Authority (FRA) in Egypt to approve a compulsory purchase offer to acquire up to 90% and not less than 51% of the existing capital of the Sixth of October Development and Investment Company (SODIC). The request was submitted on 14 September in accordance with the executive regulations of the 1992 Egyptian Capital Market Law. This acquisition offer comes after a comprehensive due diligence was carried out by the alliance, which is 70% owned by Aldar and 30% by ADQ, one of the largest holding companies in the region. The consortium offers SODIC shareholders to purchase shares at a price of EGP 20 per share, bringing the value of the company on the Egyptian Exchange to EGP 7.1bn. This represents a premium of 18% over the three-month volume-weighted average share price of EGP 16.88, and 21% over the six-month volume-weighted average price of EGP 16.50. The consortium believes that its final offer to purchase shares at EGP 20.0 per share provides a rewarding exit opportunity and a valuable proposition for SODIC shareholders, which reflects the strength of the company’s main pillars and its brand. Once the FRA approves the publication of the compulsory purchase offer, there will be a validity period of the offer ranging between 10-30 working days, as determined by the FRA, during which SODIC shareholders must respond to the compulsory purchase offer. The offer must then be executed within a maximum period of five working days. The consortium’s proposed cash acquisition of a majority stake in SODIC falls within the framework of Aldar’s strategy to invest in the Egyptian real estate market, where the company is currently evaluating several investment opportunities.