The Arkan Board of Directors will consider, before making its recommendations to shareholders, the results of the evaluation process that will be conducted by KPMG, in addition to what will be proposed by the legal advisors, which will give it a more comprehensive view during the evaluation of the proposed offer.
Through Senaat, Arkan and Emirates Steel are part of ADQ Holding, one of the largest holding companies in the region, which owns a wide portfolio of major institutions operating in key sectors within the diversified economy in the Emirate of Abu Dhabi.
The main terms of the proposed offer include that “Senaat” transfer the total issued shares of Emirates Steel to “Arkan”, provided that “Arkan” is issued compulsorily in favor of “Senaat” in exchange for bonds convertible to about 5.1 billion ordinary shares in “Arkan”. when closing the deal. The offer sets the price of bonds convertible into shares in Arkan at 0.798 dirhams per share. When applied to the valuation of “Senaat” for the Emirates Steel company, this means that the value of the “Arkan” company is estimated at 1.4 billion dirhams. After the completion of the transaction, “Senaat” will own about 87.5% of the total shares of the combined group. (wam)