Abu Dhabi's Eshraq Investments said it plans to fully acquire the shares of Goldilocks Investment Co. Ltd., a fund managed by Dubai investment bank, Shuaa Capital.
In the stock swap deal, Eshraq will issue new shares to Goldilocks investors in exchange for their shares in the fund. The shares will be issued at 40.6 fils per share, about 38 percent premium to Eshraq's closing price as of Monday, March 28, 2022.
It did not give further details on the value of the deal, but said following the acquisition, Eshraq will have combined assets of more than 3.8 billion dirhams ($1.03 billion).
The transaction is subject to the approval of Eshraq's shareholders and other regulatory approvals.
Goldilocks, which invests in top companies across the GCC including Dana Gas and GFH Financial Group, has delivered a 76 percent return in 2021, according to the statement. Also among its investments are music streaming service Anghami, and India's edtech unicorn Byju’s.
(Reporting by Brinda Darasha; editing by Seban Scaria)