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Aldar-ADQ consortium submits MTO to acquire Egypt's SODIC

Aldar-ADQ consortium submits MTO to acquire Egypt's SODIC
The consortium has offered a purchase price of EGP 20 per share
SODIC
OCDI
-0.07% 14.76 -0.01
Aldar
ALDAR
-0.96% 4.11 -0.04

Abu Dhabi – Mubasher: A consortium comprising Aldar Properties and ADQ has submitted an all-cash mandatory tender offer (MTO) to acquire up to 90% and a minimum of 51% of the outstanding share capital of Six of October Development and Investment (SODIC) for the approval of the Egyptian Financial Regulatory Authority (FRA).

The consortium has offered a purchase price of EGP 20 per share, valuing SODIC at EGP 7.1 billion ($453 million), according to a press release on Tuesday.

A total of 70% of the consortium is owned by Aldar, while ADQ is holding the remaining stake.

The FRA's approval to launch the MTO will be followed by a validity period of 10-30 working days for SODIC shareholders to respond to the offer.

This proposed acquisition is a part of Aldar’s strategy to expand its businesses in the Egyptian real estate market, with the UAE-based company currently considering several opportunities.

It is noteworthy to mention that in July 2021, the FRA approved a request by Aldar to extend the deadline for submitting the MTO to acquire SODIC for another 30 business days, following another extension that ended on 2 August.