Aldar raises synergy estimate from Sorouh merger

March 04, 2014 - 8:30:26 am

ABU DHABI: Abu Dhabi-listed developer Aldar Properties has raised its estimate of the value of synergies from its merger with another property firm, Sorouh, by 45 percent to 145-150 million dirhams or $39.5-40.9 million annually.

"The company's initial per annum synergy estimate of 90-110 million dirhams by 2015 was derived principally from operational efficiencies and interest savings on acquired debt," it said in a statement on Tuesday.

The figure has been revised "based on stronger than expected operational synergies and revised lower cost of debt acquired in the acquisition, a significant proportion of which will start to be realised in 2014." 

The merger occurred in June last year. (Reuters)