Abu Dhabi Financial Group, Shuaa Capital agree on merger

An Emirati man looks out from the Dubai Creek Habour Development towards the Burj Khalifa tower, center, and other skyscrapers in Dubai, United Arab Emirates, on Monday, June 18, 2018. Photographer: Christopher Pike/Bloomberg

Abu Dhabi Financial Group agreed to a reverse merger with Shuaa Capital PSC that will create an investment bank managing $12.8 billion of assets.

The deal values the Abu Dhabi firm’s equity at 1.5 billion dirhams ($408 million) to 1.6 billion dirhams, ADFG Chief Executive Officer Jassim Alseddiqi said in an interview on Wednesday. It also gives the combined entity a valuation of 2.8 billion dirhams and values Shuaa at 1.12 dirhams a share, a 21 per cent premium to Tuesday’s closing price.

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