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Arkan’s board approves Emirates Steel acquisition transaction

Economic News, Arab Countries, Members

Arkan’s board approves Emirates Steel acquisition transaction

 

 

 

The board of Arkan Building Materials Company has approved the offer, received from General Holding Corporation (Senaat) on 9 May, to transfer its wholly-owned subsidiary, Emirates Steel Industries (Emirates Steel), to Arkan.

 

 

Arkan will acquire Emirates Steel in exchange for the issuance of a convertible instrument to Senaat, according to a press release on Thursday.

Upon closing of the transaction, the instrument would automatically convert into 5.1 billion ordinary shares in Arkan at a fixed price of AED 0.798 per share.

 

 

Following the conversion, Senaat would own 87.5% of the entire issued share capital of Arkan. 

 

 

The Chairman of Arkan, Jamal Salem Al Dhaheri, said: “It [the transaction] will strengthen Arkan’s balance sheet and financial performance, deliver greater international scale, and position Arkan to become an entry point for investing in a key regional sector while playing a key role in the UAE’s Industrial Strategy ‘Operation 300 Billon.’”

 

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