By Daniel Shane
Abu Dhabi's two biggest developer say due diligence to take "a number of months"
The merger between Aldar Properties and Sorouh Real Estate, Abu Dhabi’s two largest developers, has entered the due diligence phase, the companies said in a bourse filing today.
In a statement to the Abu Dhabi Securities Exchange, the firms announced that Credit Suisse was advising Aldar on the tie-up, while Morgan Stanley was advising Sorouh.
Goldman Sachs and National Bank of Abu Dhabi are advising the steering committee on the merger, the filing added.
“A due diligence process is now underway to assess in detail the implications for all stakeholders and this process will take a number of months,” it read.
The state-backed merger of the two developers was announced back in March.
Aldar has twice been rescued by the Abu Dhabi government with bailouts totalling US$10bn. The developer posted a full-year net profit of US$175m in 2011 following multi-billion debts the previous year.
The firm is the UAE capital’s largest developer by market value and is known for building projects including the Yas Marina Formula One circuit.
Sorouh, Abu Dhabi’s second biggest developer, posted a first quarter net profit of AED83.6m (US$22.76m) this year, compared with AED64.3m in the same period in 2011. Revenue during the quarter doubled to AED967.2m.