An investor consortium led by Aldar Properties PJSC including Abu Dhabi Developmental Holding Company PJSC completed the acquisition of a 85.52% stake in Sixth of October for Development and Investment Company "SODIC" (S.A.E.).
December 14, 2021
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An investor consortium led by Aldar Properties PJSC (ADX:ALDAR) including Abu Dhabi Developmental Holding Company PJSC submitted a preliminary non-binding offer to acquire Sixth of October for Development and Investment Company "SODIC" (S.A.E.) (CASE:OCDI) for EGP 6.8 billion on March 14, 2021. Indicative purchase price offered would be in the range of EGP 18 to EGP 19 per share, which will be paid in cash. On September 14, 2021, Abu Dhabi Developmental Holding Company PJSC and Aldar Properties PJSC consortium made an offer to acquire 90% stake in Sixth of October for Development and Investment Company "SODIC" (S.A.E.) for EGP 6.4 billion. As of December 7, 2021, Abu Dhabi Developmental Holding Company PJSC and Aldar Properties PJSC will acquire 85.52% stake in Sixth of October for Development and Investment Company. The consortium will acquire shares at a purchase price of EGP 20 per share for a total of EGP 6.1 billion.
Transaction is subject to due diligence, applicable regulatory approvals, obtaining internal corporate approval of the offerors and obtaining minimum of 51% stake in SODIC along with other conditions. Any mandatory offer made will be subject to securing all necessary regulatory approvals in Egypt including from the Egyptian Financial Regulatory Authority, and the necessary regulatory approvals in the united. Egypt's Financial Regulatory Authority (FRA) has announced that it has received a letter from Aldar Properties requesting the extension of the deadline to submit a compulsory purchase offer. The Egyptian Financial Regulatory Authority (FRA) received a request from the UAE's Aldar Properties to extend the deadline for submitting a mandatory tender offer (MTO). The MTO submission deadline has been extended for additional 30 days starting from the original deadline of June 14, 2021, in order to complete the due diligence process. As of June 9, 2021, Aldar Properties has received approval from The Egyptian Financial Regulatory Authority or the extension it had requested regarding the timeframe to present a mandatory tender offer to acquire a minimum of 51% of the outstanding share capital of SODIC. The Egyptian Financial Regulatory Authority (FRA) approved a request by Aldar Properties to extend the deadline for submitting a mandatory tender offer. The deadline has been extended for another 30 business days following another extension that will end on August 2, 2021. On September 14, 2021, Aldar Properties has submitted for approval by the Egyptian Financial Regulatory Authority. On November 22, 2021, Egyptian Financial Regulatory Authority approved the transaction.
Mohammed Al-Shukairy of Clifford Chance LLP (UAE) acted as legal advisor to Aldar Properties and SODIC. SODIC has hired EFG-Hermes Holding S.A.E (CASE:HRHO) and another investment bank as financial adviser to study the offer. Citigroup acted as financial advisor to Sixth of October Development and Investment Company.
An investor consortium led by Aldar Properties PJSC (ADX:ALDAR) including Abu Dhabi Developmental Holding Company PJSC completed the acquisition of a 85.52% stake in Sixth of October for Development and Investment Company "SODIC" (S.A.E.) (CASE:OCDI) on December 15, 2021. All the shares under the tender offer have been tendered. BofA Securities, Inc. acted as financial advisor to Abu Dhabi Developmental Holding Company PJSC.
Aldar Properties PJSC is a United Arab Emirates-based real estate development and investment company that undertakes and operates a portfolio of real estate projects in the United Arab Emirates. The Company is engaged, along with its subsidiaries, in the development, sale, investment, construction, management and associated services for real estate. In addition, the Company is also engaged in the development, management and operation of hotels, schools, marinas, golf courses and theme parks. The Companyâs subsidiaries include Al Raha Gardens Property LLC, Al Jimi Mall LLC, Addar Real Estate Services LLC, Al Raha Infrastructure Company LLC and Aldar Academies LLC, among others. During the fiscal year ended on December 31, 2012, the Company acquired additional 50% share in Nareel Island Development Company LLC (Nareel). On June 27, 2013, effective at the close of trading, the Company merged with Sorouh Real Estate Co PJSC.
An investor consortium led by Aldar Properties PJSC including Abu Dhabi Developmental Holding Company PJSC completed the acquisition of a 85.52% stake in Sixth of October for Development and Investment Company "SODIC" (S.A.E.).