Dubai: Shuaa Capital has received shareholder approval to change its name to Abu Dhabi Financial Group (ADFG). The approval comes one month after ADFG and Shuaa Capital completed a merger.
The merged entity will now take on the ADFG name, subject to regulatory approvals. It also announced it has approved the appointment of Masood Mohammad Sharif Mahmoud as board member to replace Mustafa Kheriba, who resigned on July 31.
At a general assembly meeting, shareholders approved a decision to increase the number of board members to seven from five. The merger raised the company’s authorised capital to Dh2.5 billion from Dh1.06 billion. It also saw the company add 1.47 billion new shares on the Dubai Financial Market, where Shuaa is listed.
ADFG first invested in Shuaa in November 2016, and held a 48 per cent stake. The merger between the two follows a wave of consolidation across the UAE’s financial sector as the environment continues to face challenges, including competition and slow loan growth.
In May, Abu Dhabi Commercial Bank merged with Union National Bank and acquired Al Hilal Bank to create the UAE’s third largest banking entity, with Dh423 billion in assets.