Consortium comprising of Abu Dhabi-based Aldar Properties and ADQ has submitted an all-cash mandatory tender offer for up to 90 per cent and a minimum of 51 per cent of the outstanding share capital of The Sixth of October for Development and Investment (SODIC). The offer to SODIC shareholders follows a due diligence process carried out by the consortium, which is owned 70 per cent by Aldar and 30 per cent by ADQ. The consortium is offering a purchase price of EGP20 per share, valuing the company at EGP7.1bn ($453m). This represents a premium of 18 per cent over the three-month volume-weighted average price (VWAP) of EGP16.88, and a premium of 21 per cent over the six-month VWAP of EGP16.50. An approval to launch the tender offer by the FRA will be followed by a validity period of 10-30 working days, subject to the discretion of the FRA, for SODIC shareholders to respond to the offer.
The proposed acquisition of a majority stake in SODIC is a part of Aldar’s overall expansion strategy into the Egyptian real estate market. Headquartered in Cairo and listed on the Egyptian Exchange (EGX), SODIC is a real estate company with a portfolio of residential, commercial, and retail projects.