Orascom Development Egypt approves due diligence for SODIC takeover offer of ORE

Egyptian property developer SODIC has received an approval from Orascom Development Egypt to go ahead with the due diligence process for a potential acquisition of Orascom Real Estate’s (ORE) entire share capital.

“ODE Board has granted SODIC exclusivity to commence the due diligence process and engaged management to initiate negotiations for the transaction.” Orascom Development Egypt said in a bourse filling on Tuesday.

ORE is owner of O West Project, a 4.2 million square metre real estate development located in West Cairo.

SODIC reported to the Egyptian bourse on Tuesday its non-binding cash offer to acquire 100 percent of ORE, a subsidiary of Orascom Development Egypt, for 2.46 billion Egyptian pounds ($125 million).

SODIC is 85.5 percent owned by Aldar, the leading real estate developer and manager in the UAE, and ADQ, an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises.

“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.” SODIC said in its bourse filling.

EFG Hermes has been engaged by ORE’s shareholders as the sole financial advisor.