DUBAI Jan 21 Abu Dhabi's biggest property
firms, Aldar Properties and Sorouh Real Estate
, plan to merge in a share swap, Sorouh announced on
Sorouh shareholders would receive 1.288 Aldar shares for
every share in Sorouh, the company said. Sorouh would be
delisted on the effective date of the merger.
The two companies' boards of directors have unanimously
voted to recommend the merger to shareholders, Sorouh said.
Sorouh also said the Abu Dhabi government would pay it 3.2
billion dirhams ($870 million) in exchange for some
infrastructure assets and units in Sorouh's The Gate
With the support of the Abu Dhabi government, which owns a
major stake in Aldar, managements of the two companies had held
discussions for nearly a year on asset valuations, financial
terms and the new management structure.
The merger could help to stabilise the real estate market by
ensuring better coordination of new property developments.
Shares in Aldar and Sorouh have more than doubled in the
last one year in anticipation of the merger.
(Reporting by Dinesh Nair; Editing by Andrew Torchia)