Aldar-adq consortium submits tender offer

ABU DHABI: A consortium comprising Aldar Properties (Aldar) and ADQ has submited for approval by the Egyptian Financial Regulatory Authority (the FRA) an all-cash mandatory tender offer (MTO) for up to 90 percent and a minimum of 51 percent of the outstanding share capital of The Sixth of October for Development and Investment S.A.E. ( SODIC or the Company) ( EGX: OCDI.CA).

The submission on 14 September 2021 is in accordance with Chapter XII of the Executive Regulations of the Egyptian Capital Market Law No. 95 of the Year 1992.

The MTO to SODIC shareholders follows a rigorous due diligence process carried out by the consortium, which is owned 70 percent by Aldar and 30 percent by ADQ, one of the region’s largest holding companies.

The consortium is offering a purchase price of EGP 20.0 per share, valuing the Company at EGP 7.1 billion ( USD 453million). This represents a premium of 18% over the three-month volumeweighted average price (‘VWAP’) of EGP 16.88, and a premium of 21 percent over the six-month VWAP of EGP 16.50.[1]

The consortium believes that its final offer of EGP 20.0 per share represents a compelling liquidity event and value proposition for SODIC’S shareholders, reflecting the Company’s robust fundamentals and brand equity.

An approval to launch the MTO 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 MTO. Thereater, the MTO would need to be executed within no more than five working days.