Eshraq Investment Company, listed on the Abu Dhabi Securities Exchange, announced the approval of the company's board of directors to acquire all the shares of Goldilocks Investment Company Limited.
The Goldilocks Fund, headquartered in the Abu Dhabi Global Market, is managed by Shuaa GMC Limited, a subsidiary of Shuaa Capital, according to the Emirati newspaper Al Khaleej.
The fund adopts a long-term investment strategy that focuses on seizing opportunities, also known as constructive activity, and has achieved a net return of 243% since its inception and returns of 76% in 2021 Through direct investment in stocks and other opportunities that are undervalued or inaccurately valued.
Goldilocks' income reached 105 million dirhams in 2021 as a result of its investment in profitable companies and strong cash flows based in the UAE.
Eshraq will issue, in accordance with the terms of the deal, new shares to Goldilocks investors in exchange for their shares in the fund.
The transaction values Eshraq's shares at 40.6 fils per share, a premium of 37.8% over Eshraq's closing price as of Monday, March 28, 2022.
Following the acquisition, Eshraq Investments will own more than AED 3.8 billion in consolidated assets.
The non-cash transaction was approved by the Securities and Commodities Authority and Ishraq's board of directors. Completion of the transaction is subject to the approval of Ishraq shareholders, other customary regulatory approvals and the fulfillment of prerequisites.
