SODIC Submits a Non-binding Offer for the Acquisition of Orascom Real Estate S.A.E, Owner of “O West” Project
Sixth of October for Development and Investment Company S.A.E“SODIC” announced the submission of a preliminary non-binding cash offer for the potential acquisition of the entire share capital of Orascom Real Estate S.A.E, which is a subsidiary of Orascom for Development Egypt S.A.E “ODE”.
Orascom Real Estate "ORE” owns a 4.2 million square meter plot in West Cairo on which it is currently developing its project “O West”.
The ODE Board of Directors has granted SODIC the right to conduct due diligence process on an exclusive basis. Subject to the assumptions, terms and conditions set out in the Non-Binding Offer including completion of due diligence to SODIC’s satisfaction, SODIC has submitted an offer at an aggregate indicative purchase price of EGP 2,460 million.
As part of SODIC’s strategy to grow its presence and market share, leveraging its strong brand equity and solid track record, and as supported by its Controlling Shareholders, Aldar and ADQ consortium, which owns 85.5% of shares, SODIC is pursuing strategic growth opportunities across several markets in Egypt.
The transaction if consummated adds another strong development to SODIC’s West Cairo portfolio, broadening the developers’ offering in one of its strongest markets and cementing its position in the primary homes market.
The submission of the final binding offer is conditional upon the fulfillment of several conditions among them the satisfactory completion of comprehensive due diligence and obtaining the required approvals to execute the Transaction including SODIC's internal corporate approval
