Egypt: the UAE Aldar Properties Company offers to buy Orascom

The Sixth of October Development and Investment Company (SODIC), which is 85.5 per cent owned by the UAE’s Aldar Properties Company, has submitted a non-binding offer to acquire Orascom Development Egypt.

According to Egyptian media, the offer aims to acquire all the shares of Orascom Real Estate, a subsidiary of Orascom Development Egypt, the owner of the O West project. This project is being developed over an area of 4.2 million square metres in western Cairo.

The non-binding purchase offer includes an initial purchase price of 2.46 billion Egyptian pounds for 100 per cent of the shares of Orascom Real Estate Company. The offer is subject to the meeting of several conditions, including the completion of a comprehensive due diligence procedure on the company entrusted with the offer, the approvals of Orascom Development Egypt and the approvals of all relevant government agencies.

According to Al-Masry Al-Youm, Orascom’s board of directors agreed to allow SODIC to conduct the required due diligence studies exclusively in accordance with what was agreed upon. The directors then authorised the company’s management to negotiate the deal.

EFG Hermes was authorised by all shareholders of Orascom Real Estate to act as a financial advisor. Orascom Development Egypt owns 70 per cent of the total capital of Orascom Real Estate.

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