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Shuaa confirms in talks with ADFG for merger; shares jump 15%

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Shuaa confirms in talks with ADFG for merger; shares jump 15%

Dubai - It said that there is no certainty about the fact that the discussions between the two parties will result in transactions.

By Waheed Abbas

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Published: Sun 24 Mar 2019, 12:00 PM

Last updated: Sun 24 Mar 2019, 2:51 PM

Investment bank Shuaa Capital on Sunday (March 24) confirmed that it is holding merger talks with Abu Dhabi Financial Group (ADFG) to create a larger financial listed group, with shares jumping 15 per cent in value.
Senior executive management teams of both the companies are reviewing the commercial potential along with any legal and structural aspects of the transaction together with financial, legal and valuation advisors, it said in a statement to Dubai Financial Market, where it is listed.
The shares jumped 15 per cent to Dh0.715 by mid-day trade on the DFM. While the overall trend of the market was slightly negative, down by 0.66 per cent to 2,611.5.
"On completion of the review, the Working Groups will provide their recommendations to the respective Board of Directors of each of the institutions and should a transaction be agreeable, seek regulatory approvals," reads the statement posted on the Dubai bourse.
It said that there is no certainty about the fact that the discussions between the two parties will result in transactions. If agreed upon by the shareholders of the two companies, the final structure will be subject to legal and regulatory approval.
Shuaa's 2018 profits plunged 63 per cent to Dh27.2 million, blaming a decline in profitability to taking mark-to-mark charges on its investment in Q4 2018 and an additional one-provision on legacy assets.
waheedabbas@khaleejtimes.com


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