Aldar Properties PJSC (ALDAR) and Sorouh Real Estate Co. (SOROUH) dropped in Abu Dhabi on concern the terms of a possible merger between Abu Dhabi’s biggest property companies may dilute their shareholdings.
Aldar, the emirate’s largest developer, declined 2.3 percent, the most since Sept. 18, to close at 1.29 dirhams. The stock tumbled 5.2 percent this week. Sorouh also fell 2.3 percent, the most since June 12, to 1.29 dirhams, bringing the drop for the past five days to 3 percent. Discussions on a merger are at an “advanced stage,” the companies said yesterday, without elaborating.
The two real-estate companies, which have played an integral part in Abu Dhabi’s drive to turn itself into a tourism and business hub, said in March they are studying a merger with the “blessing” of the emirate’s government. Investors are concerned the transaction’s terms could dilute their shareholding, said Nabil Al Rantisi, managing director of brokerage at Abu Dhabi-based Menacorp.
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