Aldar Properties and Sorouh Real Estate will start trading as a merged entity on 30 June, according to a statement on Abu Dhabi Securities Exchange. The new company will have a capital of AED7.86 ($2.14bn).
The companies are conducting a board meeting on 27 June, the last day of trading for Sorouh shares, to finalise the delegation of authority.
Under the new company, the assets and liabilities of Sorouh will be assumed by Aldar. Sorouh shareholders will receive 1.288 new Aldar shares for every Sorouh share they own.
The boards of directors at Aldar and Sorouh unanimously agreed to merge in January. The merger has been expected since March 2012 when the two companies announced their intention to join forces.
The merged entity will be the fifth-largest listed company on the Abu Dhabi exchange by market capitalisation and the third-largest publicly listed real estate developer in the region behind Qatar’s Barwa Real Estate and Dubai’s Emaar Properties.
Aldar’s property portfolio includes developments such as Yas Island, Al-Raha Beach, World Trade Center Abu Dhabi and Al-Falah National Housing project in Abu Dhabi. Sorouh has been awarded the contract to masterplan three investment zones in Abu Dhabi: Shams Abu Dhabi on Al-Reem Island, Seih Sdeirah – Alghadeer development in the Eastern Region, and Lulu Island.