Dubai: Abu Dhabi shareholders have signed off on another mega merger - this one involves the National Petroleum Construction Company and National Marine Dredging Company. The latter's shareholders have now voted in favour of the move.
Now, the General Holding Corporation PJSC ( or 'Senaat' as it's known) and other minority shareholders in NPCC would transfer their stakes to NMDC. NPCC is into engineering, procurement and construction services for the offshore and onshore oil and gas sector.
Khalifa Sultan Al Suwaidi, Chairman of Senaat, said: “The transaction will create one of the largest and most diversified EPC players in the region, and the complementary nature of the businesses provides a strong platform to capture growth opportunities."
Senaat and other shareholders of NPCC will transfer the entire issued share capital of NPCC to NMDC. In exchange, NMDC would issue them a convertible instrument - of 575,000,000 ordinary shares in NMDC - on closing of the transaction. The price at which the instrument will convert into NMDC shares is set at Dh4.40 apiece.
The proposed transaction would create a "new national and regional EPC champion with an established footprint in key markets within MENA and South Asia," the company said in a statement. The combined group would have revenues of Dh8.87 billion as per 2019 numbers.
Abu Dhabi has already seen consolidation happen in its banking and utility sectors, as well as within its asset management space.