UAE's ADQ pulls out from Abu Dhabi National Hotels merger plans

June offer would have seen ADQ owning 54.98% of hotel group

  
Electronic boards displaying stock information are seen as investors look on on the floor of the ADX Abu Dhabi Securities Exchange stock market. Image used for illustrative purpose

Electronic boards displaying stock information are seen as investors look on on the floor of the ADX Abu Dhabi Securities Exchange stock market. Image used for illustrative purpose

REUTERS/Stringer .

Abu Dhabi National Hotels Co (ADNH) has been notified by state-owned ADQ that the holding company will not pursue its offer to merge Abu Dhabi National Exhibitions Company (ADNEC) with the hotel firm.

The merger would have created one of the largest hospitality, events and catering groups in the region.

As part of the merger proposal in June, ADNH was to issue to ADQ a convertible instrument that would convert into 1.221 billion ordinary shares in the capital of ADNH at 3.93 dirhams ($1.07) per share.

Upon completion of the merger, the combined group would potentially have assets of around 20 billion dirhams, with ADQ owning around 54.98 percent of the share capital of ADNH.

ADQ, formerly known as Abu Dhabi Development Holding Co, manages $110 billion in assets and has investments in a broad portfolio of businesses, including the companies that operate Abu Dhabi Ports, Abu Dhabi Airport, the Abu Dhabi Securities Exchange and major industrial assets such as Emirates Steel.

(Writing by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@refinitiv.com

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