Abu Dhabi’s largest property developers Aldar and Sorouh have agreed to merge and the process could be completed by June 30 to give birth to the Middle East’s 3rd largest real estate firm, according to statements by the two companies.
The general assembly of the two companies will meet separately on February 21 to endorse the merger, one of the largest business integration moves in the UAE.
The new entity will have a paid up capital of around Dh7.8 billion and assets of nearly Dh47 billion, making it the third largest property developer in the Middle East, they said in the statement, carried by the semi official Arabic language daily Alittihad.
“The two companies have set June 30 as the date for the completion of their merger which will give birth to a new company called Aldar Sorouh,” the paper said, without identifying the region’s largest two property firms.
It said dealing for the shares of Aldar and Sorouh would be stopped on June 23, when new shares will be issued for Sorouh shareholders.
Each Sorouh shareholder will be offered 1,288 shares in Aldar which will issue Dh3,381 billion worth of shares for those shareholders, the report said.
“The boards of directors in the two companies expect the merger to give birth to a powerful player in the real estate market. This will bring numerous benefits to the shareholders, employees and clients,” the statement said.
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