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Sunday, 28 November 2021

A final offer?

The Emirati consortium bidding to acquire upmarket developer SODIC will not up its bid again if shareholders reject the price of the ongoing mandatory tender offer, Al Shorouk reports. Aldar Properties and Abu Dhabi sovereign fund ADQ have already upped their offer price from EGP 18-19 to EGP 20, valuing the Egyptian real estate player at EGP 7.1 bn, but will not do so again if the MTO fails, the newspaper claims, citing unnamed sources at Aldar.

SODIC’s shares closed on Thursday at EGP 19.30 each, near the upper end of the EGP 13.95-19.50 band in which they’ve been trading for the past 52 weeks, according to market data from Reuters.

The consortium is bidding to acquire 90% of SODIC in an MTO that kicked off last week after it received approval from the Financial Regulatory Authority. Shareholders must agree to sell at least 51% of the company’s shares for the agreement to go through, and they have until 7 December to subscribe.

SODIC’s largest shareholder hasn’t made a decision: A consortium of Act Financial, Hassan Allam Properties and Concrete Plus Engineering has not made a final decision about whether to sell their stakes, sources tell Al Shorouk. Together the companies make up SODIC’s single-largest shareholder, owning a 15% stake in the company.

Correction: 29 November 2021.

A previous version of this article incorrectly stated that EFG Hermes has decided to sell a 2.4% in SODIC. A source close to the matter informed us that EFG already offloaded its stake in the company prior to the bid.

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