Clifford Chance

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.