Abu Dhabi’s Eshraq, Reem Investments consider merger

30/08/2017 Argaam

Abu Dhabi-listed Eshraq Properties Co. is considering a potential strategic investment to acquire the entire business and assets of Reem Investments, the two companies said in a joint statement.

 

The deal, which is expected to create the second largest listed developer in Abu Dhabi, will be by way of subscription for new shares to be issued by Eshraq.

 

The transaction remains subject to conditions, including the final agreement of specific deal terms including price as well as obtaining the required regulatory approvals, the statement said.

 

Dubai-listed Shuaa Capital is advising Eshraq, while Reem Investments has First Abu Dhabi Bank as financial advisor.

 

The boards of Eshraq and Reem said the transaction is expected to benefit shareholders of both the companies, “resulting in synergies derived from integrating their operational and financial resources and as well as combining their management experience and expertise.”

 

Eshraq’s shares were last trading up 2.4 percent on Abu Dhabi Securities Exchange. The stock accounted for more than half of total activity on the bourse, during early trade.

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