Shareholders of Abu Dhabi’s Aldar Properties and Sorouh Real Estate on Sunday approved plans to merge, creating a real estate entity with assets of about $13 billion.
The boards of the state-linked rivals proposed a merger in January and the deal was expected to be completed by end-June.
More than 50 per cent of the shareholders at both firm’s meetings backed the tie-up. Approval was expected as the deal was supported by the Abu Dhabi government.
Both firms will now apply to the UAE Ministry of Economy to approve the merger and initiate other steps including dissolving Sorouh and increasing in the share capital of Aldar, the companies said in a joint statement.
Sorouh’s shares would be delisted from the Abu Dhabi bourse.
Mohamed Al Mubarak was named the deputy chief executive and chief portfolio officer of the new entity. Greg Fewer will be chief finance officer.
Paul Warren will be the chief strategy officer while Fahed Al Ketbi and Gurjit Singh would be the chief operations officer and chief development officer respectively.
Richard Amos, current CFO of Sorouh Real Estate will continue as advisor until early 2014 and then retire, a spokesman of the company said.
Earlier in the day an Aldar spokesman confirmed its shareholders’ meeting had 69 percent attendance. The meetings needed a 50 per cent quorum for the merger vote to be valid.
Under the merger proposal, Sorouh shareholders will get 1.288 Aldar shares for every share they own.