KFIC to manage stock swap

Dubai:  Al Mazaya Holding, whose board of directors approved the proposed acquisition of the remaining stake of subsidiaries First Dubai and Waterfront (36 per cent and 21 per cent respectively), has appointed financial services firm Kuwait Finance and Investment Co (KFIC) as the transaction manager for the acquisition.

The transaction, commonly referred to as a stock swap, will be executed in two stages starting with the selling of First Dubai and Waterfront shares held by interested minority shareholders to Mazaya, and then issuing new Mazaya shares to the selling shareholders. Accordingly this will be a conditional acquisition and for all the related tasks to be conducted, could take up to 12 weeks.

Khalid Esbaitah, CEO and managing director of Al Mazaya Holding, said: "KFIC has an unblemished track record, having repeatedly provided this resource intensive service to a number of corporations in the Gulf with great success. We are confident in our choice, and believe that the team will effectively and efficiently manage the stock swap and execute the acquisition."

Al Mazaya in coordination with a number of financial advisers implemented different financial techniques to derive a fair swap ratio for this deal.