DXB said in a statement that airport 'recovery will take some time' after there was flooding caused by rainwater on the runway
Abu Dhabi’s General Holding Corporation (Senaat), a subsidiary of ADQ, one of Abu Dhabi’s three sovereign wealth funds, has proposed to merge Emirates Steel Industries with Arkan, which seeks to create the UAE’s largest steel and building material company.
The merged entity will have total assets worth Dh13 billion (b).
At present, Senaat fully owns Emirates Steel and 51 per cent of Abu Dhabi-listed Arkan.
Arkan said in a statement to Abu Dhabi Securities Exchange (ADX) that the key terms of Senaat’s offer are that Arkan would issue a convertible instrument to Senaat under the proposed merger deal that would automatically convert into approximately 5.1b ordinary shares in the capital of the company at Dh0.798 per share.
The move will value Arkan at Dh1.4b.
Senaat will own approximately 87.5 per cent of the entire issued share capital of the combined group after the completion of the merger.
Arkan’s shares hit the maximum ceiling on Sunday, rising 14.66 per cent to Dh0.915 per share, following the announcement.
The mergers and acquisitions activity in the Middle East and Africa (MEA) region has recorded a strong performance in the first quarter due to the impact of Covid-19 pandemic on the businesses.
Data from Mergermarket showed mergers & acquisitions (M&As) in the region reached $32.7b across 110 deals in the first quarter (Q1), indicating a 52 per cent jump in comparison to the equivalent period in 2020 ($21.5b, 85 deals).
ADX-listed Arkan said its board would consider the transaction before making any recommendation to shareholders.
It said if the two companies reached a deal, a general assembly meeting would be called in the second half of this year for approval from shareholders.
The deal is also subject to approval from the Securities and Commodities Authority (SCA), and other relevant authorities.
- waheedabbas@khaleejtimes.com
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