SODIC aims to fully acquire the company from parent company Orascom Development Egypt, according to a statement to the Egyptian Exchange (EGX) today
The Sixth of October Development and Investment Company (SODIC) is back on the M&A news stream, this time the property developer has offered to purchase Orascom Real Estate for $125 million.
SODIC aims to fully acquire the company from parent company Orascom Development Egypt, according to a statement to the Egyptian Exchange (EGX) earlier today.
The Abu Dhabi Developmental Holding Company (ADQ) and Aldar Properties bought a controlling stake in SODIC late last year to support its expansion into the Egyptian real estate market.
SODIC recently called off its bid to acquire Madinet Nasr Housing and Development (MNHD), after both its board of directors and shareholders rejected its offer.
According to the EGX statement, Orascom Development has granted SODIC to do its due diligence and has authorized the company's management to negotiate based on the non-binding offer, with indicative purchase price of EGP 2.46 billion.
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EFG Hermes has been appointed by the shareholders of Orascom Real Estate to assume the role of financial adviser.
Aldar Properties announced in August that it was seeking to increase investments in Egypt and the UAE by $1.5 billion.
ADQ acquired stakes from five Egyptian companies, including both private and state-owned companies, in April to the tune of $1.8 billion.
