A consortium comprising Aldar Properties and ADQ on Thursday announced the completion of its acquisition of 85.52 percent of The Sixth of October for Development and Investment, better known as SODIC.
A buy order of 304,628,772 shares valued at EGP6,092,575,440 was executed on behalf of the Abu Dhabi-based consortium, which is controlled 70 percent by Aldar and 30 percent by ADQ.
The all-cash mandatory tender offer, at a purchase price of EGP20 per share, valued SODIC at EGP7.1 billion. The offer was accepted by shareholders representing 85.52 percent of outstanding share capital, resulting in a transaction value of EGP6.1 billion ($386.8 million).
The consortium said in a statement that it will now pursue its objective to advance SODIC’s position as a leading national developer by scale and reputation, growing its portfolio of mixed-use residential communities in Greater Cairo, the North Coast and other major markets.
Talal Al Dhiyebi, group CEO of Aldar, said last week: “Aldar has identified Egypt as a priority market for international expansion, driven by a strong belief in the country’s potential and the macro-economic fundamentals driving the real estate sector.
“After studying the market, SODIC emerged as our desired entry-partner and is a natural commercial fit for Aldar. The transaction is a testament to both Aldar and ADQ’s belief in the company’s track record, governance framework and business model and we look forward to supporting SODIC create even greater economic and social value for its stakeholders, most notably the communities that the company serves across Egypt.”
Headquartered in Cairo, SODIC is one of Egypt’s leading real estate companies, active in the development of residential, commercial, and retail properties.
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