SODIC’s shares jumped 7 percent on EGX, following the majority stake offer announcement
Abu Dhabi’s largest real estate developer, Aldar Properties, is looking to acquire a majority stake in Six of October Development and Investment (SODIC) and has submitted a preliminary non-binding offer for an acquisition of at least 51 percent.
SODIC’s shares jumped 7 percent on EGX, following the majority stake offer announcement, after which the Egyptian Exchange (EGX) stopped SODIC’s trading for 10 minutes for exceeding a climb of 5 percent.
The offer will be for a minimum of 51 percent of their share capital, with an indicative share price in the range of EGP 18-19 ($1.15-$1.22) per share.
Aldar announced they were allocating capital for potential acquisitions in Abu Dhabi and in Egypt back in February, stating they wanted “to focus our outward growth into Egypt on the development side of the business and deploy meaningful capital into the opportunities coming there”.
The potential transaction will be performed by an Aldar controlled consortium, according to a press release on Sunday. Aldar also stated that they will announce a mandatory tender offer after receiving the appropriate approvals from regulatory bodies.
Several companies and individuals had recently upped their shares in SODIC. Currently, 15.08 percent of the company’s shares are owned by Hassan Allam, ACT Financial Consulting, Concrete Plus Engineering and Construction and associated groups.
