Aldar-ADQ consortium to buy 85pc stake in Sodic for $387m
ABU DHABI, December 7, 2021
An Abu Dhabi investor consortium, comprising Aldar, one of the UAE’s largest real estate groups, and top investor ADQ, has reached an agreement with Egyptian property development company Sodic to acquire its 85% stake in a transaction valued at E£6.09 billion ($387 million).
Following the successful conclusion of a mandatory tender offer, the consortium will acquire 304.6 million of the company’s shares for a cash price of E£20 per share, valuing Sodic at over E£7.1 billion.
Majority of the Sodic shareholders have agreed to sell their shares, representing 85.52% of the company’s issued share capital, to the Emirati consortium, which is 70% controlled by Aldar.
A major player in the regional property sector, Aldar is responsible for the development of iconic real estate across Abu Dhabi, including residential, commercial, and retail assets on Yas Island, the world-renowned leisure, shopping, and entertainment centre, and Saadiyat Island, the capital’s up and coming lifestyle and cultural destination.
On the new deal, Managing Director Magued Sherif said: "We are pleased to welcome Aldar and ADQ as strategic investors and key shareholders in Sodic. We want to thank our existing shareholders and investors for their trust in our company and its management team to deliver sustainable growth and returns."
"The transaction provides Sodic’s shareholders with immediate and substantial cash value reflecting the company’s solid financial position and strong brand equity," he stated.
"The Aldar-ADQ consortium brings financial strength, a solid track record in institutional real estate investment, development of premium quality communities and destinations, and property management," noted Sherif.
"We are excited to work with Aldar and are looking forward to starting a new chapter in our growth story," he added.
According to experts, Aldar had identified Egypt as a priority market for international expansion, demonstrating the company’s belief in Egypt’s potential and the macro fundamentals driving the real estate sector.
Becoming the majority shareholder in one of the country’s leading real estate developers indicates Aldar’s commitment to operate in Egypt and its intention to continue to invest in the country over the long term.
ADQ is one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.
In late 2019, ADQ had launched a $20 billion joint strategic platform with The Sovereign Fund of Egypt to invest in several key sectors such as healthcare and pharma, utilities, food and agriculture, real estate and financial services. This transaction is ADQ’s latest investment in Egypt.-TradeArabia News Service
