Dubai: Shareholders of Shuaa Capital on Thursday unanimously voted for the merger of the company with Abu Dhabi Financial Group (ADFG), a leading investment group in the region.

The transaction implies that ADFG shareholders will own 58 per cent of the enlarged entity, with Shuaa’s existing shareholders owning the rest. It is now subject to final regulatory approval, which is expected to be completed soon.

“We are bringing together two market leaders — ADFG and Shuaa — to create the leading asset management and investment banking platform in the region,” said Jassim Al Seddiqi, CEO of ADFG. “We believe there is an exciting opportunity to create significant value for all shareholders and I look forward to working with the enlarged team to deliver continued growth.”

New structure

Under the terms of the transaction, Shuaa will issue over 1.4 billion new Shuaa shares to ADFG’s parent company, Abu Dhabi Capital Management (strategic investor) in return for the entire issued share capital of ADFG. This implies the strategic investor will own 58 per cent of the enlarged entity.

The new Shuaa shares will be subject to a 12-month lock-up from the date of admission. The agreed valuation represents a 60 per cent premium to the undisturbed Shuaa share price.

Following the admission of the new Shuaa shares, the issued share capital of Shuaa will increase from about 1.06 billion Shuaa shares to 2.53 billion shares. The combined entity will remain listed on Dubai Financial Market and is expected to be re-branded as “ADFG”, with work on a full integration plan under way.