Aldar Properties PJSC (ALDAR) and Sorouh Real Estate Co. (SOROUH) surged, leading gains on Abu Dhabi’s benchmark index, on bets their potential merger into a company with $15 billion in assets would bolster their businesses.
Aldar, the biggest developer in the United Arab Emirates capital, and Sorouh, the second-biggest, both advanced 9.8 percent to 1.34 dirhams, the highest intraday level since July 11, at 11:55 a.m. in Abu Dhabi. The stocks lifted the ADX General Index (ADSMI) up 0.8 percent to 2,607.45, the highest since March 7. The ADX Real Estate Index (ADRE) jumped 9.7 percent.
The two builders, which have played an integral part in Abu Dhabi’s drive to turn itself into a tourism and business hub, said in a joint statement yesterday they set up a team to study a possible merger with the “blessing” of the emirate’s government. The team will present a plan in the next three months. Government-owned Mubadala Development Co. holds 49 percent of Aldar while the Abu Dhabi Investment Authority, a sovereign wealth fund, has a 7 percent stake in Sorouh.
No comments:
Post a Comment