Business | Banking
Dubai govt. will control merged bank
The merger between the National Bank of Dubai and Emirates Bank has created the GCC’s largest bank with an approximate market capitalisation of Dh41.3 billion ($11.3 billion).
- By Babu Das Augustine, Banking Editor
- Published: 10:06 July 12, 2007
Dubai: The merger between the National Bank of Dubai and Emirates Bank has created the GCC's largest bank with an approximate market capitalisation of Dh41.3 billion ($11.3 billion).
“The new company, Emirates NBD will be 56 per cent owned by Dubai government after the completion of the merger process,'' Ahmed Humaid Al Tayer, chairman of the merged entity told reporters on Thursday. Prior to the merger, Government of Dubai held 76.62 per cent share of EBI and 14.25 per cent of NBD shares.
According to the merger terms announced on Thursday, each NBD share will be exchanged for 0.95 shares in Emirates NBD, valuing the NBD share at Dh8.84 per share, which equates to a 14 per cent premium to the NBD share price.
“This is a landmark deal, bringing together two high quality entities in banking business. It offers significant benefits to shareholders, customers and of course, staff,'' said Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Joint Steering Committee established by EBI and NBD in connection with the Proposed Merger.
Following the merger announcement, on July 2 both banks had suspended trading of their shares on Dubai Financial Market.
EBI and NBD shares will resume trading from July 15 until the respective extra ordinary general meetings of the shareholders approve the merger and de-list the shares from the exchange.
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