Aldar Properties, the UAE-based developer, has said that it has submitted a preliminary non-binding offer for a majority stake in the Egyptian real estate group, Sixth of October for Development and Investment Company (Sodic).
The offer for a minimum of 51% of the outstanding share capital of Sodic is subject to due diligence, applicable regulatory approvals and other conditions, a statement said. It will be implemented by a consortium controlled and majority owned by Aldar, it added.
In the wake of a satisfactory outcome of the due diligence process, the Aldar-led consortium intends to make a mandatory tender offer in accordance with applicable laws and regulations, the developer continued, adding that in its offer to the Sodic board, it had stated that the indicative purchase price offered would be in the range of E£18 to E£19 per share.
Furthermore, it said that the mid-point of the range values the company at $420 million and represents a 14% premium to Sodic’s closing price on March 11 and premia of 18%, 29% and 49% respectively over the three-month volume weighted average price (VWAP) of E£15.64, the six-month VWAP of E£14.37 and the 12-month VWAP of E£12.42.
Aldar added that its offer represents a ‘compelling liquidity event and value proposition for Sodic’s shareholders, reflecting the company’s robust fundamentals and share price performance over the last 12months’.
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.
