A source has revealed that the Six of October Development and Investment Company (SODIC) will call for a board meeting to discuss UAE’s Aldar Properties’ (Aldar) preliminary non-binding offer for a potential acquisition of a majority stake in the former.
Management could then propose the appointment of an independent financial adviser (IFA) to determine the fair value of the stock.
Naeem Research said that while it is expected that most of the company’s main shareholders will, in principal, be in agreement with the strategic interest shown by Aldar, the mentioned offer price of EGP 18-19/share is likely to draw minimal response.
Naeem Research added that following due diligence, it would then be up to Aldar to decide on sweetening the offer by at least 15-20%, valuing the stock at around EGP 21-23/share.
With a substantial amount of free float (40%), SODIC’s shareholding structure includes the main stakeholders as ACT/Hassan Allam/Concrete jointly owning close to 16%. Other stakeholders include Olayan Saudi, with 13.8%, Walid Abunamay with 10%, Ripplewood with 9.2%, and Rimco Investment with 7.3%