The transaction is now subject to final regulatory approvals as well as satisfaction of conditions precedent and is expected to be completed soon.
SHUAA Capital’s shareholders have approved the proposed merger with Abu Dhabi Financial Group (ADFG), which will create an entity with $12.8 billion in assets under management.
Jassim Alseddiqi, the CEO of ADFG, said, “We are delighted to have received shareholder approval for this deal and the strong voting in favour of the combination recognizes the compelling strategic rationale behind this deal.”
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.
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.