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ADFG, SHUAA Combine to Create Regional Financial Services Company in UAE.

M2 EQUITYBITES-July 2, 2019-ADFG, SHUAA Combine to Create Regional Financial Services Company in UAE

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2 July 2019 - UAE-based investment group Abu Dhabi Financial Group L.L.C and UAE-based regional investment banking company SHUAA Capital PJSC have agreed to a transformation transaction that combines the businesses to strengthen position in the regional financial services industry, the company said.

Under the terms of the Transaction, SHUAA will issue 1.47072bn new SHUAA shares to ADFG's parent company Abu Dhabi Capital Management in return for the entire issued share capital of ADFG, giving ADFG a 58% ownership of the enlarged entity.

Following the admission of the new SHUAA shares, the issued share capital of SHUAA will increase from 1,065,000,000 SHUAA shares to 2,535,720,000 SHUAA shares.

The combination of ADFG and SHUAA will build on the collaboration to date, which has seen SHUAA making continued progress toward long-term sustainable profitability since ADFG's original investment in November 2016.

The transaction is a natural next step, enabling ADFG and SHUAA to accelerate their growth ambitions by fully integrating the two businesses.

Furthermore, it represents a transformational combination to establish the leading asset management and investment banking platform in the region.

ADFG is a leading global investment group that provides, through its regulated subsidiaries, a wide range of investment opportunities and financial services. ADFG has assets under management of USD 11.5bn.

SHUAA is an integrated financial services firm headquartered in the United Arab Emirates. The firm services corporate and institutional clients, governments, family businesses and high-net-worth-individuals with expertise in the areas of asset management, investment banking, capital markets and credit.

The firm is regulated as a financial investment company by the UAE Central Bank and the Emirates Securities and Commodities Authority.

J.P. Morgan, Herbert Smith Freehills and PwC are acting as the financial advisor, legal advisor, and financial due diligence advisor to ADFG, respectively.

UBS Investment Bank, Linklaters and Deloitte are acting as the financial advisor, legal advisor, and financial due diligence advisor to SHUAA, respectively.

KPMG is acting as independent valuer for ADFG and SHUAA.

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Publication:M2 EquityBites (EQB)
Geographic Code:7UNIT
Date:Jul 2, 2019
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