ADFG & Shuaa of Abu Dhabi finalize their merger with a capital increase

ABU DHABI, Aug 4 (Reuters) – Abu Dhabi-based financial group (ADFG) announced Sunday that it has completed its merger with Shuaa Capital and raised its authorized capital to 2.54 billion dirhams ($ 692 million).

This agreement is the latest in the consolidation of the financial sector in the United Arab Emirates, which has also seen the completion of two mergers of major banks since 2017.

The capital increase follows the admission of 1.47 billion new shares in the Dubai financial market to ADFG's parent company, Abu Dhabi Capital Management LLC, said a joint statement from the two companies.

The new shares of Shuaa will be subject to a 12-month retention period from the date of admission, the statement said.

In June, ADFG and Shuaa agreed on a merger that will create an entity with $ 12.8 billion in badets under management.

ADFG shareholders will own 58% of the extended entity, while current shareholders of Shuaa will hold 42%.

ADFG already owned 48.36% of Shuaa, a Dubai-listed company, according to Refinitiv data. The shares of Shuaa Capital were stable at the beginning of trading. (Report by Stanley Carvalho, edited by Saeed Azhar)