SODIC, Sixth of October for Development and Investment Company, submitted a preliminary non-binding cash offer for the potential acquisition of the entire share capital of Orascom Real Estate (ORE), an Orascom for Development Egypt (ODE) subsidiary.
ORE owns O West, which is a 4.2 million square meter real estate development located in West Cairo. ODE currently owns 70% of ORE.
The non-binding offer submitted by SODIC is for a preliminary equity value purchase price of EGP 2.46 billion for 100% of ORE, which accounts for almost $125 million. “The offer is subject to the fulfillment of several conditions, including the completion of due diligence, ODE’s corporate approvals, and all relevant regulatory approvals,” according to the statement.
The ODE Board has granted SODIC exclusivity to commence the due diligence process and engaged management to initiate negotiations for the transaction.
SODIC is 85.5% owned by Aldar, a real estate developer and manager in the UAE, and ADQ, an Abu Dhabi-based investment and holding company. EFG Hermes has been assigned as the sole financial advisor by ORE’s shareholders.
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