Aldar, Sorouh agree on merger
New company will be one of the largest in the Middle East with Dh47b in assets
Abu Dhabi: The boards of Aldar Properties and Sorouh Real Estate, two of Abu Dhabi’s largest real estate companies, have recommended their merger.
This will pave the way for the creation of one of the largest listed real estate companies in the Middle East and North Africa with more than Dh47 billion of combined total assets and combined market capitalisation of approximately Dh10.9 billion, based on closing share prices on January 17, 2013.
“The merger is subject to a number of conditions, including the approval of the merger by at least 75 per cent by value of the shares represented at quorate extraordinary general meetings of Aldar and Sorouh. Under the proposed terms of the merger, the government of Abu Dhabi and related entities will own approximately 37 per cent of the combined company on a fully-diluted basis,” the companies said in a joint statement on Monday.
“It is currently anticipated that, subject to the satisfaction of these conditions, the merger will become effective in June 2013,” the statement added.
Upon the merger becoming effective, shareholders of Sorouh will become shareholders in Aldar Sorouh, the Sorouh shares will be delisted from the Abu Dhabi Securities Exchange and Sorouh will be dissolved.
The merger will result in new Aldar shares (which will be listed on the Abu Dhabi Securities Exchange) being issued to Sorouh shareholders on the basis of 1.288 Aldar shares for each Sorouh share they hold.
Upon completion of the merger, the total issued share capital of Aldar Sorouh will be 7,466 million shares. Following the issue of the new Aldar shares, Sorouh shareholders would own approximately 45.3 per cent of the combined company and Aldar shareholders would own approximately 54.7 per cent.
Once the remaining convertible bonds issued by Aldar to Mubadala Development Company are converted into equity in full, the relative ownership of Sorouh and Aldar shareholders will be 43 per cent and 57 per cent, respectively.
At 11.59am on the Abu Dhabi Securities Echange, Aldar’s stock was down 8.59 per cent at Dh1.49, while Sorouh’s shares were trading 7.98 per cent higher at Dh1.76 a share.
