Under the agreement, SHUAA Capital will issue 1.47 billion new shares to Abu Dhabi Financial Group’s (ADFG) parent company, Abu Dhabi Capital Management, in return for the entire issued share of ADFG.
Wednesday 26, June 2019 BY KUDAKWASHE MUZORIWA
Abu Dhabi Financial Group (ADFG) and SHUAA Capital have agreed on the terms of their merger, which will create an entity with $12.8 billion in assets under management.
In a joint statement, ADFG and SHUAA Capital said that the transaction will enable ADFG and SHUAA to accelerate their growth ambitions by fully integrating the two businesses and it represents a transformational combination to establish the leading Asset Management and Investment Banking platform in the region.
Fawad Tariq Khan, the CEO of SHUAA, said, “Having made excellent progress in turning our business around over the past three years, supported by ADFG as a major shareholder, we now see the potential to accelerate SHUAA’s growth.”
On completion of the merger, ADFG’s shareholders will own 58 per cent of the merged entity while existing Shuaa shareholder will own 42 per cent and the agreed valuation represents a 60 per cent premium to the undisturbed SHUAA share price.
The combined entity will remain listed on Dubai Financial Market (DFM) and is expected to be rebranded as ADFG; the transaction is expected to be completed in Q3 2019.