UAE's NMDC receives offer to combine with NPCC

The marine dredging company could have an equity value of $300mln if the offer to combine with National Petroleum Construction Company goes ahead

  
Aview of oil and gas refinery. Image used for illustrative purpose.

Aview of oil and gas refinery. Image used for illustrative purpose.

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National Marine Dredging Company (NMDC) PJSC has received an offer to combine with National Petroleum Construction Company (NPCC) PJSC, the dredging company announced today.

The equity value of NMDC could be AED 1,100 if it agrees to the offer from Senaat, part of ADQ, and other minority shareholders of NPCC.

Under the terms of the offer between the two Abu Dhabi-based companies, NPCC will be transferred to NMDC, and NMDC will issue a convertible instrument of 575 million shares to NPCC. This will represent 69.7 percent of the issued shared capital, following conversion, of the marine dredging company.

The share price at which the instrument will convert into shares in NMDC will be AED 4.40 per share, meaning the implied equity value of NMDC will be AED 1,100 million, the statement said.

The offer is subject to regulatory approvals, and will be considered by NMDC board members prior to a shareholder vote before the end of 2020.

(Writing by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@refinitiv.com

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© ZAWYA 2020

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