Egypt’s Financial Regulator extends Aldar Properties’ MTO deadline for SODIC acquisition

Alyaa Stohy
2 Min Read

Egypt’s Financial Regulatory Authority (FRA) has decided to extend the deadline for receiving the mandatory tender offer (MTO) from the UAE’s Aldar Properties for full acquisition of the Sixth of October Development and Investment Company (SODIC).

The extension will apply for an additional 30 days starting from 14 June; the previous deadline set for submitting the MTO, in order to complete the due diligence process. 

In mid-March, Aldar Properties submitted a non-binding offer to acquire at least 51% of real estate giant SODIC’s shares for EGP 18-19 per share.

Meanwhile, the Board of Directors at SODIC has decided to appoint the investment bank EFG Hermes and an international investment bank as financial advisors to the company. This aims to help it study the initial offer submitted by the alliance of investors led by Aldar on 13 March, and negotiate it to help the company find strategic opportunities.

SODIC achieved sales of EGP1.9bn in the first quarter (Q1) of 2021, up 113.9% year-on-year (y-o-y), and down 44.0% quarter-on-quarter (q-o-q). 

The sequential decrease is expected given the general strength of real estate in Q4 of 2020. The company’s newest West Cairo project, Karmell, has contributed 35.0% to Q1 of 2021 sales, bringing the area’s contribution to 62.0%. Meanwhile, East Cairo projects contributed 38.0% to the quarter’s sales.

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