Arkan appoints independent valuer and legal advisors to review offer to form a strategic combination with Emirates Steel

The key terms of Senaat's offer are to transfer Emirates Steel to Arkan in consideration of the issuance by Arkan to Senaat of a convertible instrument

  

Abu Dhabi, United Arab Emirates: Arkan Building Materials Co. PJSC (ADX: ARKAN) (“Arkan” or “the Group”), a leading construction and building materials company in the UAE, today announced that it has appointed KPMG as independent valuer and White & Case, as legal advisors, to review the offer submitted, on 12 May, by General Holding Corporation PJSC (‘Senaat’), part of ADQ, to combine Arkan with its wholly owned subsidiary, Emirates Steel Industries PJSC (‘Emirates Steel’).

Arkan’s Board of Directors will refer to the valuation work of KPMG along with work done by other advisors in assessing the proposed offer before making a recommendation to shareholders. . 

Through Senaat, both Arkan and Emirates Steel are part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.

The key terms of Senaat’s offer are to transfer Emirates Steel to Arkan in consideration of the issuance by Arkan to Senaat of a convertible instrument. Upon closing of the transaction, the convertible instrument would automatically convert into approximately 5.1 billion ordinary shares at a fixed price of AED 0.798 per share in Arkan’s capital. When applied to Senaat’s valuation of Emirates Steel, the offer implies an equity value for Arkan of approximately AED 1.4bn. Post completion, Senaat would own approximately 87.5% of the entire issued share capital of the combined group.

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