Abu Dhabi: General Holding Corporation PJSC (Senaat) and other minority shareholders of National Petroleum Construction Company (NPCC) on Sunday confirmed an offer to combine their entity with the National Marine Dredging Company PJSC (NMDC).
The offer sets out the principal terms and conditions by which Senaat, a part of ADQ, one of the region’s largest holding companies, and other minority shareholders of NPCC would transfer NPCC to NMDC.
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The proposed transaction would create a new national and regional integrated EPC powerhouse with an established footprint in key markets within MENA and South Asia. The combined group would be one of the largest integrated oil and gas and marine services EPC players in the MENA region with integrated revenue of Dh8.8 billion.
The merger also aims to maintain NMDC’s existing listing, positioning the combined group as one of the largest companies on the Abu Dhabi Securities Exchange (ADX), which is expected to have a positive impact on overall demand and liquidity for the combined group’s shares.
“As one of the largest pan-regional EPC players, this transaction will create a larger, more diversified and financially flexible national champion,” said Khalifa Sultan Al Suwaidi, chief investment officer at ADQ and Chairman of Senaat.
“We will be able to successfully drive increased growth while showcasing the very best of Abu Dhabi and its industry-leading capabilities on the global stage,” he added.
“Subject to completion of the transaction, ADQ and Senaat will also consider increasing the free float of the combined group through a follow-on public offering at a later date.”
Should NMDC’s board recommend the offer along with its shareholders voting in favour, the transaction could close towards the end of 2020, subject to the receipt of all required regulatory approvals.
The deal would also see NMDC issue to Senaat and other minority shareholders of NPCC a convertible instrument, convertible into ordinary shares in the combined group upon closing of the transaction. The price at which the convertible instrument will convert into shares in NMDC is Dh4.40 per share, putting equity value of NMDC of Dh1.1 billion.
