Abu Dhabi's Aldar, Sorouh merger hits snag

Abu Dhabi's Aldar Properties and Sorouh Real Estate, which have agreed to merge operations and create a business with assets worth US$13bn, failed to meet the necessary quorum for a crucial merger vote on Thursday.

Meetings have now been scheduled for March 3, where the companies will hope to receive the go-ahead from shareholders to merge, spokesmen for both companies said.

The boards of both state-linked firms proposed a merger in January and the deal was expected to be completed by end-June.

Under the merger proposal, Sorouh shareholders will get 1.288 Aldar shares for every share they own. Sorouh will be dissolved and delisted from the local bourse after the merger.