DUBAI: Stockholders at two Abu Dhabi banks yesterday approved a plan to merge the firms into the biggest bank of all Gulf Arab countries with assets of $178 billion.
Shareholders at the National Bank of Abu Dhabi (NBAD)and First Gulf Bank (FGB) approved the tie-up at two separate meetings, a move first publicly discussed by the two financial firms in June.
Under terms of the deal, the combined company will be known as NBAD. FGB shareholders will receive 1.254 NBAD shares for each FGB share they hold. After the deal is concluded, FGB stockholders will own 52 per cent of the new bank.
Officials say the government of Abu Dhabi and government-related firms will own 37pc of the bank, which will have a presence in 21 countries.
The chairman of the new firm is slated to be Shaikh Tahnoon bin Zayed Al Nahyan, a member of the Abu Dhabi ruling family. He now serves as both chairman of FGB and as the national security adviser of the UAE.