Egyptian property giant Sixth of October for Development and Investment Company (SODIC) has submitted a non-binding offer to fully acquire Orascom Real Estate for $125 million, the residential compound developer’s parent firm Orascom Development Egypt said Tuesday.
The offer by SODIC, which is majority-owned by a consortium comprising Aldar Properties and ADQ, comes as Egypt has sought to attract billions of dollars in investment from its oil-rich Gulf allies at a time when the country’s economy is struggling from the economic fallout of Russia’s war in Ukraine
Aldar and ADQ acquired a controlling stake in SODIC last December for $388 million and the purchase of Orascom Real Estate would further expand their Egyptian real estate business. The non-binding offer comes months after SODIC submitted an offer to buy up to 100% of Madinet Nasr for Housing and Development’s (MNHD) share capital at a price that valued the Cairo-based developer at $328 million.
However, MNHD’s board rejected SODIC’s takeover bid saying the offer does not represent the company’s true value.
Orascom Development said in a statement that its board had agreed to allow SODIC to conduct the required due diligence and authorised the company’s management to commence negotiations based on the non-binding offer.
SODIC’s offer is in line with Aldar’s broader strategies to expand its international footprint with Egypt being a priority market for the company, Talal Al Dhiyebi, Aldar Properties’ CEO said last year.
