Published: January 21, 2013
Aldar Properties and Sorouh are set to create a US$13bn company.
Abu Dhabi-based developers Aldar Properties and Sorouh are set to merge, creating a combined asset portfolio of US$13bn. The new company, to be known as Aldar Sorouh Properties, would be the second-largest developer in the country by assets and market capitalisation.
As part of the deal Sorouh will be delisted from the national stock exchange, its assets and liabilities transferred to Aldar. Sorough shareholders will receive 1.288 Aldar shares for each Sorouh share. The deal is subject to a shareholder approval quorum of 75%, in value terms, from both companies.
The respective companies have described the deal as creating a "stronger and more diversified company" that can "take advantage of future opportunities in Abu Dhabi and other regional markets in the coming years". It comes a year after Aldar received a two-part government bailout package worth US$9.8bn in the wake of a major regional property crash.