Aldar Drops as Acquisition Gains Seen Overdone

By IVCPOST Staff Reporter

Jul 02, 2013 09:01 PM EDT

Aldar Properties PJSC is Abu Dhabi's largest real estate developer. For the first time, the shares of the company have dropped after its acquisition of Sorouh Real Estate Co last June 30. This was after investors speculated gains were overdone.

The shares decreased by 2.6% to 2.25 Dirhams at the close of trade in Abu Dhabi today. The gain of the company was trimmed by 77%.

After Aldar completed acquisition of Sorouh, the company created US$13 billion in assets. The smaller builder's shares were delisted from the bourse of Abu Dhabi after its shareholders got 1.288 Aldar shares for each share they held in an all stock transaction.

Analyst for HSBC Bank Middle East Patrick Gaffney said on June 23 that the price estimate for Aldar would be at 2.6 Dirhams. This is the highest among eight analysts in a Bloomberg survey. Three analysts receommended purchase of Aldar shares while three others advised holding the stock according to a data compiled by Bloomberg.

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