By 11:48 am UAE time, the Abu Dhabi National Hotels stock rose near the maximum percentage in today’s trading by about 14 percent, reaching a price of 5.7 dirhams..
Market investors executed 15 transactions on a trading volume of 102.23 thousand shares, achieving liquidity of 366.10 thousand dirhams..
At the same time, the market index rose by 0.25 percent, to the level of 6706.40 points, through a total transaction volume of 126.09 million shares, with a total liquidity of 1.2 billion dirhams..
The stock’s rise today coincided with the announcement of the establishment of a leading national and regional entity in hospitality, events and catering services, through a potential business consolidation between the Abu Dhabi National Exhibitions Company (ADNEC), a subsidiary of the Abu Dhabi government-owned holding company, and the Abu Dhabi National Hotels Company.
The proposed deal will result in the establishment of one of the largest leading institutions in the fields of hospitality, events and catering services in the region, which will advance the tourism and hospitality sectors in the Emirate of Abu Dhabi to serve its long-term economic transformation. The business consolidation between the two companies will also contribute to achieving greater synergy between their businesses by coordinating ADNEC’s portfolio and reorganizing its main assets. The transaction is expected to generate cumulative profits shortly after its completion.
According to a press release, the total assets of the consolidated group will amount to about 20 billion UAE dirhams (5.4 billion US dollars) as of December 31, 2020, and its activities will include management and ownership of a portfolio of 28 hotels with approximately 6,700 rooms, and three large exhibition centers in Abu Dhabi, Al Ain and the British capital, London. As well as several companies for catering services, cafes and restaurants.
and for Transfer of ownership of “ADNEC” to “Abu Dhabi National Hotels”The latter issues bonds convertible to the “Holding”.“(ADQ)which will convert into approximately 1,221,374,045 ordinary shares of “Abu Dhabi National Hotels” upon completion of the transaction.
The offer sets the price of bonds convertible into shares in “Abu Dhabi National Hotels” at about 3.93 dirhams per share..