Abu Dhabi Financial Group and Shuaa Capital finalize their merger

Abu Dhabi Financial Group announced the completion of its merger with Shuaa Capital and the increase of its authorized capital to 2.54 billion dirhams (692 million dollars).

This is the latest in a financial sector merger underway in the country, which has entered into two major merger agreements since 2017.

The two companies said in a joint statement that the capital increase comes after the acceptance of 1.47 billion new shares in the Dubai financial market for Abu Dhabi Capital Company, the parent company Financial Group Abu Dhabi Financial.

The new shares of SHUAA will be subject to a 12 month sales ban from the date of acceptance.

Abu Dhabi Financial Group and Shuaa Capital agreed in June on the terms of their merger, which would create an entity with badets of $ 12.8 billion.

The shareholders of Abu Dhabi Financial Group will own 58% of the extended entity, while the current shareholders of Shuaa will hold 42%.

According to Abu Dhabi Financial Group, Abu Dhabi Financial Group already holds 48.36% of Shuaa's publicly traded shares. Shuaa Capital's shares stabilized at the beginning of the transaction.