Abu Dhabi: Shareholders of Abu Dhabi’s top property companies, Aldar and Sorouh, approved merger plans at an extra ordinary general meeting (EGM) on Sunday evening.
Both EGMs secured the required quorum after companies fell short of a quorum for the crucial merger vote on February 21, thereby delaying the decision to March, AldarSorouh officials told Gulf News.
“All resolutions have been approved by shareholders,” a spokesman of Aldar told Gulf News. The shareholders meeting of Aldar had a 69 per cent quorum. Sorouh secured 55 per cent quorum at its EGM.
Both companies agreed to distribute 6 fils per share as dividends.
“Aldar approved dividend distribution of 6 fils per share. The 2012 financial results were approved,” Ali Muhairi, chairman of Aldar, told Gulf News.
Al Muhairi, said: “The merger will create a strengthened, more diversified company with a portfolio of revenue-generating assets and a very strong development pipeline that is able to take advantage of sustainable growth opportunities and bring greater value for our stakeholders.”
Mubarak Matar Al Humairi, Chairman of Sorouh, said: “This vote of confidence underlines the strong strategic rationale for uniting these two companies. Aldar Sorouh will combine complementary high quality assets and strong management capabilities. The immediate focus of Sorouh’s board and management team is to now successfully deliver this merger.”
On January 21, 2013, Aldar and Sorouh jointly announced the proposed merger of Aldar and Sorouh.
The merger will create one of the largest listed real estate companies in the Middle East and North Africa region, with over Dh47 billion of combined total assets, and combined market capitalisation of approximately Dh10.9 billion based on closing share prices, company officials said.
They added that the combined group will have a diversified portfolio of assets with total equity of Dh14.7 billion as and an attractive pipeline of assets under development in Abu Dhabi.
With shareholders of both the companies approving the merger, Sorouh shareholders will be given 2.88 Aldar shares for each Surouh share. It will take another three months before merging the two companies as per Securities and Commodities Authority and Abu Dhabi Stock Exchange regulations.
As per Aldar EGM, the share capital of Aldar will be increased by Dh3.38 billion from Dh4.08 billion to Dh7.46 billion to enable the issue of Aldar shares to the shareholders of Sorouh, in accordance with the terms of merger.
