Egyptian property developer SODIC has submitted a preliminary non-binding cash offer to buy Orascom Real Estate, a subsidiary of Orascom for Development Egypt (ODE), for $125 million (EGP 2.46 billion), according to a statement released Tuesday.
ODE said its board of directors granted SODIC the right to conduct the due diligence process on an exclusive basis.
SODIC is majority-owned by a consortium of Abu Dhabi’s Aldar Properties and state holding firm ADQ, which bought a controlling stake of 85.5% in the Egyptian firm last year. Aldar accounts for 70% of the consortium, while ADQ owns the remaining 30%.
If the transaction pushes through, SODIC will add another strong development to its West Cairo portfolio, where Orascom Real Estate owns a 4.2 million square-meter plot and is currently developing its O West project.
According to ODE, the submission of the final binding offer is conditional upon the fulfillment of several conditions, which include the satisfactory completion of comprehensive due diligence and obtaining the required approvals to execute the transaction, including SODIC's internal corporate approvals.
The offer is part of SODIC’s strategy to grow its presence and market share across several markets in Egypt.
