Wednesday, June 9, 2021 – 6:37 PM
ABU DHABI, 9th June, 2020 (WAM) — The Holding Company “ADQ” has announced that it has submitted an offer to the Abu Dhabi National Hotels Company, “Abu Dhabi National Hotels”, to unite its business with its subsidiary, the Abu Dhabi National Exhibitions Company (ADNEC).
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.
The total assets of the consolidated group will amount to about 20 billion dirhams (US$ 5.4 billion) as on December 31, 2020, and its activities will include management and ownership of a portfolio of 28 hotels comprising about 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.
In exchange for transferring the ownership of “ADNEC” to “Abu Dhabi National Hotels”, the latter will issue bonds convertible to “ADQ” Holding, which will convert to about 1,221,374,045 ordinary shares in “Abu Dhabi National Hotels” upon completion of the transaction.
The offer sets the price of the bonds convertible into shares in “Abu Dhabi National Hotels” at about 3.93 dirhams per share. The offer includes an estimate of the value of the shares owned by the “Abu Dhabi National Hotels Company” at about 3.93 billion dirhams. After the completion of the transaction, ADQ Holding will own about 54.98% of the total issued capital of the Abu Dhabi National Hotels Company.
Mansour Al Mulla, Head of Alternative Investments, Mergers and Acquisitions at ADQ Holding, said that this proposed strategic partnership to unify the business between two of the largest hospitality and events companies in Abu Dhabi, will provide an exceptional opportunity to create value in the tourism sector in the Emirate of Abu Dhabi; This will expand the scope of the consolidated group’s business, provide new sources of revenue, as well as enhance its financial position to become one of the best companies in the future.
It is noteworthy that in the event that the Board of Directors of “Abu Dhabi National Hotels” approves the proposed offer and subsequently receives the approval of the shareholders, “ADQ” Holding expects to complete this transaction during the second half of 2021, subject to obtaining all required governmental and regulatory approvals.
WAM/ Ahmed Al Nuaimi/ Emad Al Ali