Arkan Building Materials Company, a leading construction and building materials company in the UAE, said it has appointed KPMG as independent valuer and White & Case, as legal advisors, to review the merger offer submitted last month by General Holding Corporation (Senaat), part of ADQ, with its wholly owned subsidiary, Emirates Steel Industries.
Through Senaat, both Arkan and Emirates Steel are part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy, said the company in a statement.
Arkan said its board of directors will refer to the valuation work of KPMG along with work done by other advisors in assessing the proposed offer before making a recommendation to shareholders.
The key terms of Senaat’s offer are to transfer Emirates Steel to Arkan in consideration of the issuance by Arkan to Senaat of a convertible instrument.
Upon closing of the transaction, the convertible instrument would automatically convert into 5.1 billion ordinary shares at a fixed price of AED0.798 per share in Arkan’s capital.
When applied to Senaat’s valuation of Emirates Steel, the offer implies an equity value for Arkan of approximately AED1.4 billion ($381 million).
Post completion, Senaat would own 87.5% of the entire issued share capital of the combined group, it added.-TradeArabia News Service