Shuaa Capital (SHUAA), the regional investment banking and capital markets company, today announced the end of its general assembly meeting to vote on the proposed merger with Abu Dhabi Financial Group. 100% of the shareholders present voted in favor of the completion of the merger, thus entering into the final stages of the transaction pending regulatory approvals and completion of the list of prerequisites agreed upon and expected to be completed soon.
"We are pleased that Shuaa shareholders have agreed to this important transaction and confirm their strong vote in favor of completing the strategic advantages of this merger," said Jassim Al Sadiqi, Chief Executive Officer, Abu Dhabi Financial Group. We see a rewarding opportunity to provide great value to all shareholders, and I look forward to working with the team to continue to grow. "
Under the terms of the transaction, SHUAA will issue 1,470,720,000 new shares to Abu Dhabi Financial Group (Abu Dhabi Capital Group), the Abu Dhabi Financial Group (ADG), in exchange for the entire share capital of Abu Dhabi Financial Group. Thus, the strategic investor will own 58% of SHUAA shares after increasing its capital.
In a sign of the strategic investor's commitment to the deal, Shuaa's new shares will be subject to a 12-month trading ban from the date of issue. The approved valuation represents a premium of more than 60% on the share price of Shuaa before the announcement of the merger talks.
With the issuance of the new SHUAA shares, the capital shares will increase from 1,065,000,000 shares to 2,535,720,000 shares. The consolidated entity resulting from the merger will remain on the Dubai Financial Market (DFM) and is expected to be named "Abu Dhabi Financial Group PJSC", while the transition to one entity will continue.