The transaction marks the largest foreign direct investment in the Egyptian real estate sector to date, cementing EFG Hermes’ leadership in the MENA M&A advisory space
EFG Hermes’ investment banking division, the leading investment banking franchise in Frontier Emerging Markets (FEM), announced today that it successfully concluded advisory to Sixth of October for Development and Investment Company (SODIC) in the sale of 85.5% of its EGX-listed shares through a mandatory tender offer (MTO) to a consortium comprising UAE real estate development company Aldar Properties and Abu Dhabi Developmental Holding Company (ADQ). c.305 mn shares were tendered to the consortium at EGP 20 per share. Transaction closing is subject to execution and settlement procedures on the Egyptian Stock Exchange.
Maged El Ayouti, Managing Director and Deputy Head of Investment Banking at EFG Hermes said: “The closing of this deal today marks yet another successful milestone in the division’s strategy to further cement its position as the leading advisory firm in Egypt and the broader region. Valued at over $388 million, the transaction is the largest foreign direct investment in the Egyptian real estate sector to date, providing a clear signal of strong foreign investment appetite for Egypt. We are proud to have contributed to this landmark transaction in one of the country’s most strategic sectors, and one that further strengthens SODIC’s position as one of the industry’s heavyweights.”
With 25 years of experience in the Egyptian real estate space, SODIC is one of the country’s leading real estate development companies, bringing to the market award-winning, large-scale developments to meet Egypt’s ever-growing need for high-quality housing, commercial, and retail spaces. Aldar is a leading real estate developer and manager in the UAE, responsible for the development of iconic residential, commercial, and retail assets, as well as leisure and entertainment destinations in Abu Dhabi. The company has a diverse range of business interests, including fee-based development management, asset management, facilities management, hospitality, and education. ADQ is one of the region's largest holding companies, with direct and indirect investments in more than 90 companies locally and internationally.
In September, Aldar submitted a request to Egypt’s Financial Regulatory Authority (FRA) to acquire up to 90% of SODIC as part of a consortium ADQ. Aldar accounts for 70% of the consortium while state-backed ADQ makes up the remainder.
EFG Hermes has consistently demonstrated its unrivaled ability to advise on key transactions across its markets through an unrivaled distribution platform supported by world-class research, brokerage, and investment banking services. In 2021, the Investment Banking team closed a total of 31 transactions worth $7 billion, including 10 M&A transactions and 11 ECM transactions. Most recently, the division served as joint bookrunner on the AED 4.0 billion listing of ADNOC Drilling on the ADX; joint bookrunner on the Dh2.7 billion listing of Yahsat on the ADX; bookrunner and underwriter on Alkhorayef Water & Power Technologies’ $144 million IPO on Tadawul; and advisor on the sale of 100% of Bank Audi S.A.E to First Abu Dhabi Bank, to name a few.