This transaction marks the largest foreign direct investment in Egypt’s real estate sector to date, consolidating EFG Hermes’ leadership in M&A advisory in the MENA region.
The investment banking division of EFG Hermes, the leading Emerging Frontier Markets (EMF) investment banking franchise, today announced that it has successfully completed the Sixth of October advisory for the development company and investment (SODIC) in the sale of 85.5% of its listed company EGX shares through a compulsory takeover bid (OMT) to a consortium comprising the real estate development company of the Arab Emirates united Aldar Properties and Abu Dhabi Developmental Holding Company (ADQ). approximately 305 million shares were offered to the consortium at a price of EGP 20 per share. Closing of transactions is subject to execution and settlement procedures on the Egyptian Stock Exchange.
Maged El Ayouti, Managing Director and Deputy Managing Director of Investment Banking at EFG Hermes, said: “The closing of this transaction today marks another successful step in the division’s strategy to strengthen its position as a premier firm. consultancy services in Egypt and the wider region. Valued at over $ 388 million, the deal is the largest foreign direct investment in Egypt’s real estate sector to date, providing a clear signal of a strong foreign investment appetite for Egypt. We are proud to have contributed to this historic transaction in one of the most strategic sectors of the country and which further strengthens SODIC’s position as one of the industry’s heavyweights.
With 25 years of experience in the Egyptian real estate space, SODIC is one of the country’s leading real estate development companies, bringing award-winning, large-scale developments to market to meet Egypt’s ever-growing housing needs. high quality,, and retail spaces. Aldar is a leading real estate developer and manager in the United Arab Emirates, responsible for the development of iconic residential, commercial and commercial assets, as well as leisure and entertainment destinations in Abu Dhabi. The company has a wide range of business interests, including paid development management, asset management, facilities management, hospitality and education. ADQ is one of the largest holding companies in the region, with direct and indirect investments in more than 90 companies locally and internationally.
In September, Aldar filed an application with the Egyptian Financial Regulatory Authority (FRA) to acquire up to 90% of SODIC as part of an ADQ consortium. Aldar represents 70% of the consortium, while the state-backed ADQ makes up the rest.
EFG Hermes has consistently demonstrated its unmatched ability to advise on key transactions in its markets through an unrivaled distribution platform supported by world-class research, brokerage and investment banking services. In 2021, the Investment Banking team closed a total of 31 transactions worth $ 7 billion, including 10 M&A transactions and 11 ECM transactions. Most recently, the division served as associate bookrunner on ADNOC Drilling’s AED 4.0 billion list on ADX; co-bookrunner on Yahsat’s listing at 2.7 billion dirhams on the ADX; bookrunner and underwriter of Alkhorayef Water & Power Technologies’ $ 144 million IPO on Tadawul; and advising on the 100% sale of Bank Audi SAE to First Abu Dhabi Bank, to name a few.