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Sun 30 Jun 2013 09:01 AM

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Aldar chief hails new era after merger completed

Company chairman sees 'strong and exciting fundamentals'; shares start trading on Sunday

Aldar chief hails new era after merger completed

Shares in the newly merged AED46bn ($12.5bn) Aldar Properties and Sorouh Real Estate will be traded on the Abu Dhabi Exchange for the first time on Sunday.

A statement to the bourse said the merger of the two real estate companies became effective at the close of trade on June 27 and shareholders would now be able to trade in the new shares.

The new merged company will operate under the name of Aldar Properties with the Sorouh brand name disappearing, it said.

The merger has created the largest listed real estate developer in Abu Dhabi and the second largest real estate developer in the UAE, with combined total assets of approximately AED46bn.

A total of 3,381,000,000 new Aldar ordinary shares were issued to those shareholders of Sorouh who appear on the share register of Sorouh immediately after close of trading.

The new number of outstanding Aldar ordinary shares following the capital increase is 7,862,629,603. Sorouh has been dissolved and its assets and liabilities have been transferred to Aldar, the statement said.

Abubaker Seddiq Al Khouri, the new chairman of Aldar Properties, said: “It gives me great pleasure to announce that today marks the first day of business as a combined company.

"Operating under the name Aldar Properties, the business is one of the biggest real estate developers in the region.

"The company benefits from a strong balance sheet, a large asset base, a prime land bank for development and an experienced management team. These strengths, combined with our continued close partnership with the Abu Dhabi Government, will allow us to flourish commercially in an economy that is sustainable.

"I believe that all these strong and exciting fundamentals will deliver significant value to all our stakeholders for years to come.”

The company also said it had negotiated an amendment to the terms and conditions of a AED2.1bn Sorouh loan facility signed in June 2010.

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