Aldar and Sorouh boards approve merger
Boards to call an extraordinary general meeting of shareholders
The boards of Aldar and Sorouh have agreed on a merger of the two firms.
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The boards of Abu Dhabi’s biggest real estate developers, Aldar Properties and Sorouh Real Estate, have approved a state-backed merger of the firms, it was announced on Monday.
A Reuters report said that the merger would go through with a share swap, citing unnamed sources.
“The boards have officialised it and will soon be calling an extraordinary general meeting of shareholders for approval,” one of the sources told the newswire.
“The next step is to seek shareholder approval, but it’s pretty much a done deal now. If you look at shareholders on either side, most of the big ones are in approval of the deal,” another source added.
The management of the two companies have been in discussions for nearly a year, with the government of Abu Dhabi backing the talks, which centred around asset valuations, financial terms and a new management structure.
