FGB 'reversing into' NBAD, consolidate pro forma financials released.
The merger of FGB and National Bank of Abu Dhabi (NBAD) is to be accounted as an acquisition by FGB of NBAD, a reverse acquisition under IFRS 3 Business Combinations.
Following the release of their respective H1 results and, according to a statement from the banks, 'in line with transparent disclosure around the announced merger between the two', FGB and NBAD have jointly released pro forma financials.
In the statement jointly released to the Abu Dhabi Securities Market, the two banks' pro forma consolidated accounts for H1 2016 show the combined entity with assets of AED 660.9 billion, liabilities of AED 566.9 billion and net profit of AED 5.3 billion.
The information will also be included as part of NBAD's annual update of its EMTN programme in accordance with disclosure obligations. The statement from the banks noted that, "The fair value exercise ('purchase price allocation') is not completed as at the date of this document and may result in different values being attributed to the assets, liabilities and contingent liabilities acquired than those that are shown in the pro forma financial information."
The pro forma financial information was compiled based on the accounting policies of FGB being the accounting acquirer. The merger is to be effected by a capital issuance of 5,643 million shares of AED 1 by NBAD to the shareholders of FGB, in a share swap transaction at the exchange rate of 1.254 shares of NBAD for each share of FGB.
[c] 2016 CPI Financial. All rights reserved. Provided by SyndiGate Media Inc. ( Syndigate.info ).
|Printer friendly Cite/link Email Feedback|
|Date:||Aug 22, 2016|
|Previous Article:||Saudi Capital Market Authority presses for transparency on IFRS progress.|
|Next Article:||Non-resident deposits in UAE drop AED 6.3 billion in July.|