Abu Dhabi-listed companies Aldar Properties and Sorouh Real Estate announced on Sunday that the shareholders of both companies have approved the merger of the two companies at their respective EGMs. The proposed merger will create a stronger and more diversified company to take advantage of future opportunities in Abu Dhabi and other regional markets in the coming years.
Subject to the satisfaction of the conditions of the merger, Aldar and Sorouh will apply for a resolution of the UAE Minister of Economy approving the merger and the associated steps required to implement the merger including, the dissolution of Sorouh, the increase in the share capital of Aldar and the amendments to Aldar's articles of association. On the effective 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 AldarSorouh Properties PJSC ("AldarSorouh"). It is currently anticipated that, subject to the satisfaction of these conditions, the merger will become effective in June 2013. This timeframe is indicative only and is subject to change.
Ali Eid Al Mheiri, Chairman of Aldar, commented: "I am delighted that Aldar's shareholders have given their wholehearted support to the merger with Sorouh. The merger will create a strengthened, more diversified company with a portfolio of revenue-generating assets and a very strong development pipeline that is able to take advantage of sustainable growth opportunities and bring greater value for our stakeholders."
Mubarak Matar Al Humairi, Chairman of Sorouh, said: "We welcome our shareholders support for the merger with Aldar. This vote of confidence underlines the strong strategic rationale for uniting these two companies. Aldar Sorouh will combine complementary high quality assets and strong management capabilities. The immediate focus of Sorouh’s board and management team is to now successfully deliver this merger."
The proposed members of the AldarSorouh Board (as nominated by Aldar and Sorouh) following implementation of the merger (from the effective date) are as follows.
Chairman Abubaker Seddiq Al Khoori; Vice-Chairman Ali Eid Al Mheiri; Board Member Mubarak Matar Al Humairi; Board Member Dr. Sultan Ahmed Al Jaber; Board Member Ali Majid Al Mansouri; Board Member Mohammed Haji Al Khoori; Board Member Ali Saeed Abdulla Sulayem Al Falasi; Board Member Mansour Mohamed Al Mulla; Board Member Ahmed Khalifa Mohamed Al Mehairi; Board Member Martin Lee Edelman.
The majority of the proposed management team for AldarSorouh has been selected. The team has been chosen from the existing management of both companies, all of whom have extensive industry expertise and strong market knowledge:
Deputy CEO and Chief Portfolio Officer, Mohamed Al Mubarak; Chief Finance Officer, Greg Fewer; Chief Strategy Officer, Paul Warren; Chief Operations Officer, Fahed Al Ketbi; Chief Development Officer, Gurjit Singh.
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