The shareholders of Arkan Building Materials Company, listed on the Abu Dhabi Securities Exchange and specialized in manufacturing building products and materials in the country, have approved a proposal to combine the strategic business between Arkan and Emirates Company. Steel Industry Emirates Steel is the leading and integrated steel industry company in the Middle East.
According to Arabia Net, the merger deal between the two parties will result in the establishment of a listed company with a leading position locally in the building and construction materials sector, with strong and promising potentials to achieve further growth in the country. and the world.
It is reported that Emirates Steel is a wholly owned company of the General Holding Company Industries, a subsidiary of the Holding Company - ADQ and the sole owner of the Emirates Steel Company, according to the Emirates News Agency, WAM.
The terms of the proposed offer submitted by Senaat in May include transferring the ownership of the Emirates Steel Company to Arkan, with Arkan issued to Senaat in return for convertible bonds.
Upon closing of the transaction, the bonds will compulsorily and automatically convert into 5.1 billion Arkan ordinary shares at a fixed price of AED 0.798 per share. Upon completion of the transaction, Senaat will own 87.5% of the total issued shares of Arkan.
Arkan's Chairman, Eng. Jamal Salem Al Dhaheri, said that the approval and support of our shareholders to move forward with the strategic deal to unify the businesses of Arkan and Emirates Steel provides a unique opportunity to invest in Arkan and Emirates Steel. A regional national leader in the building and construction materials sector and has a strong position that qualifies it to benefit from the promising opportunities arising from the expected economic recovery.
The consolidated group will benefit by strengthening budgets, in addition to expanding business in addition to its key role in supporting sustainable economic growth goals set by the country's industrial strategy Project 300 billion.
Emirates Steel is a leading player in the industrial sector and adopts the latest technological innovations in the areas of manufacturing, efficiency and sustainability.
The consolidated group will have the capabilities and ingredients that will qualify it to benefit from the expected recovery in the construction sector locally and regionally during the post-Covid-19 phase, thanks to the accelerated pace of infrastructure projects development. As a result of government stimulus and accelerators programs in the UAE and the region.
The deal is expected to close later this year and the two companies will continue to operate independently until then.
