Property developer Aldar is merging with Sorouh Real Estate
Abu Dhabi-based real estate developer Aldar Properties has reported net profits of AED1.34bn ($365m), a 109 per cent increase on the AED645.5m net profit made in 2011.
Revenue for the year hit AED11.404bn, up 69 per cent on the AED6.743bn made in 2011.
Aldar is in the process of merging with another Abu Dhabi-based property developer, Sorouh Real Estate. In January, the boards of directors at both companies unanimously agreed to merge. The plan is now awaiting approval by shareholders of both firms.
If approved by 75 per cent of the companies’ shareholders, the merger will take place in June. It will see Sorouh shareholders receiving 1.288 Aldar shares for each Sorouh share they hold. On the date of the merger, Sorouh shares would be delisted from the Abu Dhabi Securities Exchange and Sorouh would be dissolved as a legal entity, Aldar will then be named Aldar Sorouh Properties. The company will be headed by Abubaker Seddiq al-Khouri as chairman – he is currently managing director at Sorouh, with Aldar chairman Ali Eid AlMheiri as the vice-chairman.
The merger would create one of the largest listed real estate companies in the region with AED47bn of assets as of September 2012, and a combined market capitalisation of AED10.9bn – based on share prices on 17 January this year.
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.
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