Sorouh Real Estate Co. (SOROUH) and Aldar Properties PJSC (ALDAR) surged the most since 2005 after Reuters reported that a final deal on a merger between the Abu Dhabi- based property companies will be signed in the coming weeks.
Sorouh soared 14 percent, the biggest jump since Bloomberg started tracking the shares in December 2005, to 1.58 dirhams at the close in Abu Dhabi. Aldar, the biggest developer in the United Arab Emirates capital, also rallied 14 percent, the most since September 2005, to 1.59 dirhams. The ADX Real Estate Index (ADRE) increased 13 percent, the most on record, helping lift the ADX General Index (ADSMI) 0.6 percent. The stocks were the most traded by volume on the Bloomberg GCC 200 Index as of 2:34 p.m. in Dubai.
The companies have reached an initial agreement on a potential merger, Reuters reported, citing three unidentified people familiar with the matter. The final deal will involve a share swap with no cash payment, two of the people were cited as saying. Aldar’s Deputy Chief Executive Officer Mohammed Al Mubarak declined to comment when contacted by Bloomberg News.
Sorouh, Aldar Surge After Merger Deal Report: Abu Dhabi Mover - Bloomberg
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