Sorouh creditors approve merger with Aldar

14/06/2013 08:14 AST

Abu Dhabi's two realty giants Aldar Properties and Sorouh Real Estate have applied to the Abu Dhabi Executive Council for getting its nod on the proposed merger, which is expected to go into effect between June 20-30.

Both property developers told Abu Dhabi Securities Exchange in a regulatory filing that none of the shareholders raised any objection to the proposed merger during the statutory creditor objection period, which expired on Thursday.

The realty firms raced to build landmarks in the capital, until the 2008 property crisis halted their growth and forced their shareholders to think a merger to become the third largest publically traded property firm in the Middle East, in 2013. In accordance with the provisions of the Companies Law, during the three month period beginning on the date on which the resolutions approving the proposed merger passed by the Sorouh extraordinary general assembly were filed with the Commercial Registry, creditors of Sorouh were entitled to file an objection to the proposed merger.

Sorouh confirmed that it did not receive any objections to the merger scheme from any creditors. Sorouh shares jumped 8.3 per cent to hit a 44-month high and Aldar rallied 4.3 per cent to its highest since January 2011. After getting shareholders nod, both real estate developers have now applied with the Abu Dhabi Executive Council for getting its approval of the proposed merger, the regulatory filing said.

Once such approval is granted, property developers will proceed to apply for a ministerial resolution from the Minister of Economy to declare the merger effective and to approve the increase in the share capital, the amendments to its Articles of Association, the dissolution of Sorouh and the transfer its assets and liabilities to the new company.

The proposed merger will become effective upon the issuance of the Ministerial Resolution, expected to be between June 20 and June 30, 2013. On the effective date, Sorouh will be merged in Aldar along with its assets and liabilities and for each Sorouh share 1.288 new Aldar shares will be issued to those who appear on the share register of Sorouh.

Trading in the new Aldar shares will begin on the first trading day immediately after the effective date. Upon the issuance of the Ministerial Resolution, Sorouh will cease to exist and its shares will no longer be listed on the Abu Dhabi Securities Exchange.

Both the real estate giants have agreed that the new name of the merged company will be Aldar Properties PJSC and not Aldar Sorouh Properties PJSC, as has been proposed earlier.

Aldar Properties is the biggest realty firm in Abu Dhabi which built residential, commercial, retail, leisure, hospitality, education and medical facilities. Real estate developer's property portfolio includes major developments and re-developments within Abu Dhabi, such as Yas Island, Al Raha Beach development, World Trade Center Abu Dhabi and Al Falah National Housing project. Important projects which Sorouh Real Estate built included Shams Abu Dhabi on Al Reem Island, Seih Sdeirah - alghadeer development in the Eastern Region, and Lulu Island.

Khaleej Times