The merger of Abu Dhabi's two biggest real estate firms Aldar Properties and Sorouh Real Estate will be completed by June 30, also the first trading day of the new company, the Emirates Securities Market ADX in Abu Dhabi said in a statement on Sunday.
According to the statement, Aldar Properties' last share price on Thursday, June 27, will be the first share price of the new developer Aldar Sorouh.
As Sorouh Real Estate will be de-listed from the ADX, new Aldar shares will be distributed to Sorouh shareholders.
The merger, which both partly state-owned developers announced in March 2012, will create a new real estate entity with assets worth 55 billion Dirham (15 billion U.S. dollars). Aldar Sorouh will be the United Arab Emirates' (UAE) second developer behind Dubai' Emaar Properties with assets worth 61.2 billion Dirham ((16. 7 billion dollars).
For each Sorouh share, shareholders would get 1.29 new Aldar shares. The two merging firms agreed that the name of the new entity would be Aldar Properties.
Aldar gained 96 percent in the last 12 months, while Sorouh shares advanced a whopping 166 percent in the same period. On Sunday, Aldar fell 4.44 percent to 2.15 Dirham (0.59 dollar). Sorouh shares dived 5.96 percent to close at 2.68 Dirham (0.73 dollars).
Aldar developed the Formula-1 Grand Prix circuit on Yas Island near the UAE capital Abu Dhabi. Sorouh is behind Shams Abu Dhabi and investment zone on Reem islands.