Back to the complete issue
Thursday, 15 April 2021

Sodic taps EFG Hemes to advise on acquisition bid

Sodic appointed EFG Hermes to act as its financial advisor in Aldar Properties’ bid to acquire 51% of the Egyptian real estate giant, according to a regulatory filing (pdf). Sodic appears to have made the hire last week to assess the value offered by the Emirati real estate firm. Sodic’s board also approved kicking off the due diligence process from Aldar’s side as well as appointing another independent financial adviser. Aldar had previously submitted a non-binding offer to acquire at least 51% of Sodic’s shares at EGP 18-19 apiece. The offer’s midpoint price values the company at EGP 6.6 bn, and was at a 14% premium above Sodic shares’ closing price at the time the bid was made. Sodic shares closed today at EGP 16.00 apiece.

Sodic’s largest shareholder appears to have an open mind and is exploring all possibilities, it said last month. The consortium of Act Financial, Hassan Allam Properties and Concrete Plus Engineering and Construction, holds a 15% stake in Sodic. Olayan Saudi Investment holds 14%, while the Abanumay family has 10% and Ripplewood 9%.


Five Stars Flour Mills to be sold off for not paying its debts: Flour maker Five Stars Flour Mills is mulling several acquisition offers from GCC players for 100% of the company, Al Mal writes, quoting sources close to the matter. The move comes as the company had been struggling to pay off EGP 2 bn in accumulated debt since defaulting on its loans in 2016 after the EGP float.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.