Dubai: KPMG has been signed up as independent valuer by Arkan Building Materials Co. to review the offer from Senaat – part of Abu Dhabi holding company ADQ – to merge with Emirates Steel Industries.
Arkan’s Board will refer to the valuation work of KPMG - along with work done by other advisors - in assessing the proposed offer before making a recommendation to shareholders.
The key terms of Senaat’s offer are to transfer Emirates Steel to Arkan through Arkan issuing a convertible instrument. On closing the transaction, the convertible instrument would automatically convert into around 5.1 billion ordinary shares at Dh0.798 a share in Arkan’s capital.
When applied to Senaat’s valuation of Emirates Steel, the offer implies an equity value for Arkan of approximately Dh1.4 billion. Post-completion, Senaat would own approximately 87.5 per cent of the entire issued share capital of the combined entity.