Abu Dhabi Holding ADQ offered an offer to establish a hospitality company with $ 5.4 billion by integrating two domestic hospitality groups, as an attempt to form a larger entity that supports long-term diversification plans.
According to Arab Net, Holding, integrated Abu Dhabi National Hotels, with Abu Dhabi National Exhibition Company, an ADQ holders, according to a statement issued on Wednesday. The shares of Abu Dhabi National Hotels jumped 15% on Wednesday, the maximum allowed in the Abu Dhabi market, reaching its highest level since 2010, said Bloomberg and was briefed in Arabic.
ADQ said the proposed deal would create one of the largest hospitality centers, events and catering services in the region and would help attract more tourism and travel to the emirate.
New giant
The compact group is scheduled to affect approximately $ 5.4 billion in accordance with the two companies' data until the end of December, including a portfolio of 28 mamed and managed hotels and 3 large exhibition centers in Abu Dhabi, Ain and London, as well as food processing companies and food and beverage outlets.
The integration will also represent better capacity to manage costs and the largest revenue structure that offers broader growth opportunities, along with a stronger and more efficient capital structure.
Abu Dhabi National Hotels will issue a convertible tool for ADQ, which will be converted to 1,221,374,045 ordinary shares in the capital of Abu Dhabi National Hotels when the transaction closes. The conversion factor is AED 3.93 per share.
The offer means that the value of equity is about 3.93 billion dirhams for Abu Dhabi National Hotels. After completing the project, ADQ will own about 54.98% of the total capital of Abu Dhabi National Hotels.
