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Clifford Chance advises Aldar on acquisition of majority stake in Egypt's SODIC alongside ADQ

20 December 2021

Clifford Chance advises Aldar on acquisition of majority stake in Egypt's SODIC alongside ADQ

Aldar-ADQ consortium enters as a long-term strategic equity partner to help guide future growth.

Clifford Chance has advised Aldar Properties PJSC in connection with the acquisition of 85.52% of the outstanding share capital of The Sixth of October for Development and Investment S.A.E. (SODIC) following a successful mandatory tender offer submitted by an Aldar-ADQ consortium.

Headquartered in Cairo and listed on the Egyptian Exchange (EGX), SODIC is one of Egypt’s leading real estate companies with a 25-year track record of success and sustained growth in the residential, commercial, and retail sectors. SODIC also benefits from a significant land bank for future development.

The Abu Dhabi based consortium, which is controlled 70% by real estate developer and manager Aldar and 30% by ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy, will focus on identifying growth opportunities and guiding the company’s long-term strategy. The consortium’s objective is to advance SODIC’s position as a leading national developer by scale and reputation, growing its portfolio of mixed-use residential communities in Greater Cairo, the North Coast and other major markets.

The transaction comprises an all-cash mandatory tender at a purchase price of EGP 20.0 per share, which valued SODIC at EGP 7.1 billion. The offer was accepted by shareholders representing 85.52% of outstanding share capital, resulting in a transaction value of EGP 6.1 billion (USD 386.8 million).

The Clifford Chance team was led by Mohammed Al-Shukairy, Regional Managing Partner, Middle East, with support from senior associates Gareth Dray and Rizwan Irfan Butt.

Mohammed commented: "We are very pleased to have supported Aldar in this strategic transaction as part of its international expansion in a priority market. This is undoubtedly a significant development for both Aldar and for the Egyptian real estate market as a whole."

Ranked 1st for M&A in the Middle East and Africa by Mergermarket in 2020, Clifford Chance regularly advises on the region's most high profile, largest and innovative M&A transactions. This has recently included advising Nakheel on its transaction with Emirates Central Cooling Systems Corporation (Empower) in relation to 19 district cooling assets; DP World on its acquisition of JSE-listed Imperial Logistics; Al Khaliji Commercial Bank on its merger with Masraf Al Rayan, the first ever public company statutory merger in Qatar; PIF on its US$69 billion sale of its stake in SABIC; AD Power's US$20 billion sale to TAQA; and NCB on its US$223 billion bank merger with Samba.