Abu Dhabi’s Aldar to Buy Sorouh in $1.5 Billion Deal

Aldar Properties PJSC (ALDAR) has consented to buy Sorouh Real Estate PJSC at the cost of 5.5 billion dirham ($1.5 billion). According to a statement y the two companies, 1.288 of Aldar’s shares will be offered for each Sorouh share. Thus, based on the closing price of January 17th, Sorouh’s shares are worth 2.10 dirhams. The Managing Director of Sorouh – Abubaker Seddiq Al Khouri – will be chairman of of the combined Aldar Sorouh Properties PJSC. The deal was backed by the government of Abu Dhabi, which has taken an increasingly direct role in the development of projects and support of builders after the impact of the credit crisis on real estate.