(MENAFN- Khaleej Times) The shares of Aldar Properties, one of the biggest realty companies in the Middle East, began trading in its shares after the landmark merger with Sorouh Real Estate, another state-owned developer.
The merger became effective at the close of trade on June 27, when all regulators gave their approvals. Aldar shares opened at Dh2.14 and closed at Dh2.17 with 69,210,127 shares changed hands valuing Dh147.8 million.
With the merger 3,381,000,000 new Aldar ordinary shares were issued to those shareholders of Sorouh, who appear on the share register of Sorouh immediately after close of trading on the effective date.
The number of outstanding Aldar ordinary shares following the capital increase is 7,862,629,603. Sorouh has been dissolved and its assets and liabilities have been transferred to Aldar in accordance with the provisions of Federal Law No. 8 of 1984 concerning commercial companies.
In a statement, the company announced to have successfully negotiated an amendment to the terms and conditions of the loan facility entered into on June 28, 2010 between Sorouh and a syndicate of banks, and which currently has an outstanding balance of Dh2.1 billion.
The interest margin on the loan has been reduced from 4.5 per cent to 2.45 per cent representing a significant and immediate interest cost reduction that clearly demonstrates the synergy benefits of merging the two companies.
Aldar Properties is one of the largest listed real estate companies in the Middle East and North Africa region, with over Dh46 billion of combined total assets as of March 31 2013, and a market capitalisation of approximately Dh16.7 billion based on the closing share prices of both Sorouh Real Estate and Aldar Properties at the end of trading on June 27, 2013.
The company owns the largest land banks in the region (77 million square metres), 90 per cent of which is located in investment zones.
Commenting on Sunday's events, Abubaker Seddiq Al Khouri, the new chairman of Aldar Properties, said: "It gives me great pleasure to announce that today marks the first day of business as a combined company. Operating under the name Aldar Properties, the business is one of the biggest real estate developers in the region."
Chairman said the company benefits from a strong balance sheet, a large asset base, a prime land bank for development and an experienced management team and these strengths, combined with our continued close partnership with the Abu Dhabi government, will allow us to flourish commercially in an economy that is sustainable.
"I believe that all these strong and exciting fundamentals will deliver significant value to all our stakeholders for years to come," Al Khouri said.
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