Leading real estate developer SODIC submitted a preliminary EGP 2.46bn non-binding offer to acquire 100% of Orascom for Real Estate (ORE) — a subsidiary of Orascom Development Egypt (ODE).
ORE owns a 4.2 million square meter plot in West Cairo on which it is currently developing its project O West.
ODE granted SODIC exclusivity to kick off the due diligence process.
Sources close to the deal said that SODIC plans to complete the deal as soon as possible, and it is expected that due diligence will take between one and a half to two months at the latest.
The sources added to Daily News Egypt that the completion of the deal and its final pricing will depend on the results of the due diligence examination, explaining that the price is subject to an increase based on the results of the examination.
They added that the choice of o West is due to the land bank that the city enjoyed, and great opportunities to develop that land or make partnerships to develop it, while CI Capital plays the role of the financial advisor to SODIC in the deal.
As part of SODIC’s strategy to grow its presence and market share, leveraging its strong brand equity and solid track record, and as supported by its controlling shareholders, Aldar and ADQ consortium, which owns 85.5% of shares, SODIC is pursuing strategic growth opportunities across several markets in Egypt.
The transaction, if consummated adds another strong development to SODIC’s West Cairo portfolio, broadening the developers’ offering in one of its strongest markets and cementing its position in the primary homes market.
The submission of the final binding offer is conditional upon the fulfillment of several conditions among them the satisfactory completion of comprehensive due diligence and obtaining the required approvals to execute the transaction including SODIC’s internal corporate approvals.
