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UAE: Shuaa-ADFG merger to create US$12.8B entity

 |  June 26, 2019

Dubai investment bank Shuaa Capital agreed to merge with its largest shareholder, Abu Dhabi Financial Group (ADFG), in a deal that would create a listed entity with Dh47 billion (US$12.8 billion) assets under management.

Under the terms of the agreement, Shuaa will issue 1.47 billion new shares to Abu Dhabi Capital Management, the parent company of ADFG, in return for the entire issued share capital of ADFG, Shuaa said in a statement to the Dubai Financial Market, where its shares trade. Abu Dhabi Capital Management will own 58% of the combined entity, while existing Shuaa shareholders will control the remaining stake, it added.

Shuaa was valued by an independent valuer at Dh1.1 billion (US$299.5 million), which pushed the total value of the combined entity to Dh2.5 billion (US$680.7 million), said Jassim Alseddiqi, chief executive of ADFG.

“The transaction is a natural next step, enabling ADFG and Shuaa to accelerate their growth ambitions by fully integrating the two businesses,” Shuaa said. “It represents a transformational combination to establish the leading asset management and investment banking platform in the region.”

Full Content: The National

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