Aldar Properties and Abu Dhabi holding company ADQ have made a mandatory tender offer (MTO) for up to 90 percent of EGX-listed real estate company SODIC.
Aldar is offering to acquire at least 51 percent of the outstanding capital stock of The Sixth of October for Development and Investment Company (SODIC), which is part of its expansion strategy into the Egyptian real estate market. Further opportunities are currently being analyzed.
Aldar and ADQ, which own 70 percent and 30 percent of the consortium, said it was offering EGP 20 (AED4.67) per share for a valuation of EGP 7.1 billion (AED105.88 million) for the company.
A press release from the two companies states that the price is 18 percent more than the three-month volume-weighted average price (VWAP) of EGP 16.88, and 21 percent more than the six-month VWAP of EGP 16.50.
“This proposed acquisition of a majority stake in SODIC is a part of Aldar’s overall expansion strategy into the Egyptian real estate market, with Aldar currently assessing several opportunities,” the press release said.
Cairo-based SODIC is listed on the Egyptian Exchange (EGX).