Aldar, Sorouh merger vote on Feb 21
Abu Dhabi, January 28, 2013
Shareholders of Abu Dhabi state-linked firms Aldar Properties and Sorouh Real Estate will vote on the proposed merger next month and the deal is expected to be completed by end-June, the companies said in a joint statement.
Abu Dhabi's two biggest property firms agreed on an all-share merger last week creating a business with $13 billion in assets.
The state-backed tie-up, aimed at reviving the emirate's battered real estate sector, creates the second-largest listed property firm in the United Arab Emirates and one of the biggest in the Middle East.
Both the companies will hold an extraordinary general meeting of shareholders to vote on the proposed merger on Febraury 21, Aldar said in a filing to Abu Dhabi bourse Monday.
The property firms said that the effective date for the merger was set for June 30 when new Aldar shares would be issued to Sorouh shareholders.
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 once the merger is completed. The deal is subject to shareholder approval.
Shares of Sorouh would be suspended on June 23, the statement said.
Sorouh shareholders will get a premium of 16.9 percent, Abubaker Seddiq al-Khouri, Sorouh's managing director and the proposed chairman of the new business had said during the merger announcement.
The Abu Dhabi government will own a 37-percent stake in the new firm and will also pay Sorouh 3.2 billion dirhams in exchange for some infrastructure assets and units in its The Gate development.
The management of the combined group, to be named Aldar Sorouh Properties, has proposed a nine-member board which includes Khouri as chairman and state-owned fund Mubadala's head of real estate and infrastructure unit Ali Eid Al Mheiri as vice chairman.
Mubadala will be the single largest shareholder in the combined entity with a holding of 19.15 percent.
Other board members include Mubarak Matar Al Humairi, Sultan Ahmed Al Jaber, Ali Majid Al Mansouri, Ali Saeed Abdulla Sulayem Al Falasi, Mansour Mohamed Al Mulla, Ahmed Khalifa Mohamed Al Mehairi and Martin Lee Edelman. - Reuters
More Construction & Real Estate Stories
- Drake and Scull awards key supply contract
- FCC wins $702m Doha metro line contract
- SPF Realty sees Dubai project success
- Abu Dhabi set for big property show
- Aldar working on $1.5bn UAE housing projects
- Gulf Finance House to start $3bn Tunisia project
- Abu Dhabi to see 10pc surge in new homes
- Saudi construction sector booming on new contracts
- Emaar offers 330 apartments in MBR City
- Dubai Design District sees big demand
- HUGE DEAL: Arabtec inks $40bn Egypt housing project
- Galfar ex-CEO gets 15 years' jail over bribes
- $32m BFH car park work underway
- Bahrain awards $5.8m project tenders
- Spinneys to set up distribution centre at Kizad
- Dubai unveils $300m hitech 'green' city project
- Deyaar plans $245m Dubai complex
- IFA unveils $272m Dubai mixed-use project
- CBRE tops Fortune’s most admired firms list
- Kuwait's real estate sales hit $1.1bn in Jan
- Dubai RTA awards $27m roads contract
- Work to start on Bahrain beach project
- Damac launches luxury apartments at Expo site
- Kuwaitis top GCC property buyers in Oman
- Rubber World to showcase at Big 5 Saudi
- Tool to help create effective property listings
- 'Smart' move by Dubai Design District
- Drake unit wins $13m contract in India
- Solar-powered cleaning boats launched in Sharjah
- $27m Expo Hotel Sharjah deal signed