Dubai: Another bid merger play is happening in the UAE's corporate landscape, with National Marine Dredging Company (NMDC) to combine with National Petroleum Construction Co. (NPCC). NMDC would remain listed on Abu Dhabi Securities Exchange following the process and the combined entity will be one of the largestbased on market capitalisation.
The company is a big player in dredging, land reclamation and marine civil construction. The NMDC Board of Directors will recommend to shareholders to approve the merger offer from Abu Dhabi's General Holding Corporation (Senaat) and other minority shareholders of National Petroleum Construction Co.. (General Holding Corp. is part of ADQ.)
NPCC is an engineering, procurement and construction company that offers solutions to the offshore and onshore oil and gas sector. "The NMDC Board believes the transaction is beneficial for shareholders, as well as NMDC’s wider stakeholders," it said in a statement. "The combination of NMDC and NPCC will create one of the leading integrated oil and gas and marine services EPC players with an established footprint across MENA and South Asia."
The deal will be effected through a convertible instrument and the listing of the new NMDC shares will occur before the end of the first quarter of 2021, provided shareholder and regulatory approval is received.
The transaction is subject to approval by NMDC shareholders, at a general assembly meeting which is likely to take place before the year-end.
* The convertible instrument will be issued to NPCC shareholders. The price at which the convertible instrument will convert into shares in NMDC is Dh4.40 per share.