SODIC appoints financial advisors to study the UAE's "Aldar Properties" bid

CAIRO – 15 April 2021: The Board of Directors of the Sixth of October Development and Investment Company (SODIC) decided to appoint EFG Hermes and an international investment bank, financial advisors to the company, to look into the initial offer submitted by the consortium of investors led by Aldar Properties on March 13th, and negotiate it to help the company in finding other strategic opportunities.

The company said in a statement to the Egyptian Exchange (EGX) that the offer included a potential cash acquisition of a stake of not less than 51 percent of the issued company’s capital.

The Board approved the fee offers submitted by the financial advisors regarding the deal, in addition to allowing the coalition of investors who are approved by the company to carry out due diligence checks on the company, which is coordinated by the financial advisors.

The board agreed to appoint an independent financial advisor to the company regarding the deal, and to authorize Maged Sharif, managing director, or Omar al-Hamwi, a board member, individually or jointly, to choose the independent financial advisor from the advisors making their bids.

In March, Sixth of October Development and Investment Company - SODIC said that it had received a letter from Abu-Dhabi-based company Aldar Properties, containing a non-binding initial offer for a potential cash acquisition of a stake of not less than 51 percent of the company's issued capital shares.

SODIC added that the estimated purchase price is between LE 18 and LE 19 per share, through a compulsory purchase offer on the entire company's shares.

It pointed out that the potential offer, in the event that it proceeds, will be presented through a company or companies with a special purpose established for this purpose by the company, either individually or collectively, with a coalition of investors, and the majority of its capital will be owned and controlled by the company.

The company requested that a comprehensive due diligence examination be made available to the company and its subsidiaries.

The Sixth of October Development and Investment Company (SODIC) achieved, during the first nine months of 2020, a net profit of LE 537.84 million, compared to profits of LE 506.09 million during the same period of the previous year, taking into account the minority rights.

The company's revenues declined during the first nine months of 2020 to reach LE 3.15 billion, compared to LE 3.4 billion, during the same period of the previous year.