ADX-listed Eshraq gets shareholder approval for Goldilocks Investment Co. buy

Dubai: Shareholders of the Abu Dhabi’s Eshraq have given their go-ahead for the takeover of Goldilocks Investment Co. through a non-cash transaction. New shares in Eshraq will be issued to Goldilocks’ shareholders in exchange for their stakes. Once the deal is done, Eshraq will have assets of $1 billion plus. 

The transaction values Eshraq at 40.6 fils a share, which is 37.8 per cent over its closing price on March 28. Eshraq is listed on ADX. Goldilocks was until now managed by Shuaa GMC, an entity within the Dubai fund manager Shuaa Capital’s portfolio.

“We are very pleased that all resolutions related to the approval and execution of the strategic acquisition of Goldilocks were approved by the largest majority,” Eshraq said in a statement. “The acquisition of a high-performing fund like Goldilocks will enable Eshraq to increase its profitability, contribute to the improvement of its share price and position the company for strong business performance, while creating tangible and long-term sustainable value for Eshraq's shareholders.”

The Eshraq Board of Directors will now go for ‘further necessary approvals’ from regulators and other relevant stakeholders, which is expected to be completed by the end of the second quarter. Its Q2-2022 financials are expected to include gains from the Goldilocks buyout.