Holding offers to merge ADNEC with Abu Dhabi National Hotels

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Holding offers to merge ADNEC with Abu Dhabi National Hotels

The Abu Dhabi National Hotels Company has disclosed that it has received an offer from ADQ Holding Company regarding a possible merger between National Hotels and one of ADQ’s subsidiaries.

Wataniya Hotels said, in a statement to the Abu Dhabi Securities Exchange today, Wednesday, that the board of directors is in the process of studying the aforementioned offer, provided that any new details will be announced at a later time.

In turn, the ADQ Holding Company said in a statement that it had submitted an offer to the Abu Dhabi National Hotels Company to unite its business with its subsidiary Abu Dhabi National Exhibitions Company (ADNEC).

ADQ expected that the proposed deal would result in the establishment of a leading entity in the fields of hospitality, events and catering services in the region, which would advance the tourism and hospitality sectors in the Emirate of Abu Dhabi to serve its long-term economic transformation.

She added, that the unification of the business between the two companies will contribute to achieving greater synergy between their businesses by coordinating ADNEC’s portfolio and reorganizing its main assets, expecting the deal to achieve cumulative profits in value shortly after its completion.

The total assets of the consolidated group will amount to about 20 billion dirhams (equivalent to about 5.4 billion US dollars), according to the financial statements announced by the two companies at the end of December 2020, to include management and ownership of a portfolio of 28 hotels with about 6,700 rooms, and three large exhibition centers in Abu Dhabi, Al Ain and the capital British London, in addition to several companies for catering services, cafes and restaurants.

ADQ Holding clarified that in exchange for transferring ADNEC’s ownership to Abu Dhabi National Hotels, Wataniya Hotels 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. .

She indicated that the offer set the price of bonds convertible into shares in the “Abu Dhabi National Hotels” at 3.93 dirhams per share.

She added that 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, so that ADQ owns about 54.98% of the total issued capital of the Abu Dhabi National Hotels Company, after completing the deal.





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