Dubai: The merger of Abu Dhabi developers Aldar Properties and Sorouh Real Estate is expected to take effect between June 20 and June 30, the two companies said on Thursday, a tie-up that will create one of the Gulf region’s biggest real estate firms with about $13 billion in assets.
Aldar and Sorouh, in a joint statement, said they have applied for merger approval from the Abu Dhabi Executive Council and once this is granted it will seek a ministerial resolution from the Minister of Economy to declare the merger effective.
Aldar and Sorouh have also agreed that the new name of the merged company will be Aldar Properties PJSC. Originally, the merged firm was to be called Aldar Sorouh Properties.
“The new branding will combine elements from both companies: the Aldar name with the Sorouh colour and imagery. This follows extensive research among customers and other key stakeholders,” Aldar and Sorouh said.
As part of the deal, which was approved by shareholders in March, Sorouh shareholders are to get 1.288 new Aldar shares for every Sorouh share they hold, with no cash changing hands.
Abu Dhabi government-owned entities are to hold a large share of the merged company. Mubadala Development Company, a strategic investment vehicle at the heart of Abu Dhabi’s economic diversification plans, is to have 23.23 per cent, according to a shareholder circular describing the terms in March.
Aldar shares last traded 0.9 per cent down at Dh2.30, while Sorouh was flat at Dh2.76.