February 23, 2024

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ADQ, IHC Capital suggest mega-merger to create regional actual property and hospitality powerhouse

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Abu Dhabi: ADQ, an funding and holding firm primarily based in Abu Dhabi, and IHC Capital submitted a joint proposal to Q Holding, to merge ADQ’s full possession of Abu Dhabi Nationwide Exhibitions Firm (ADNEC) and its majority stake in Modon Properties with IHC Capital’s whole curiosity in Modon, all to be mixed into Q Holding. This transfer, introduced on Wednesday, is meant to ascertain a dominant participant within the area’s actual property, hospitality, occasions, catering, and concrete improvement sectors.

The potential merger is seen as a strategic step that may improve Abu Dhabi’s standing as an built-in actual property and hospitality chief, additional supporting the emirate’s financial transformation efforts. By consolidating assets and operations, the proposed mixture is anticipated to generate substantial worth, resulting in a bigger and extra environment friendly entity with optimized price constructions. Moreover, the combination of property would provide diversification advantages, decreasing industry-specific dangers and securing extra funding alternatives whereas bettering provide chain efficiencies and general profitability.

“This proposed provide offers a novel alternative to generate worth by bringing collectively key actual property and hospitality property, creating an Abu Dhabi champion that fuels its ambitions,” mentioned Mohamed Hassan Alsuwaidi, UAE Minister of Funding and MD & CEO at ADQ. “The mixed property would profit from elevated scale and new income alternatives that can place it effectively for future progress.”

The ensuing entity would have an implied market capitalization of round Dh44 billion (roughly $12 billion), boasting a various portfolio of actual property developments, venues, land plots, and hospitality property.

“We firmly consider that the proposed transaction of consolidating Abu Dhabi’s main tourism and actual property property into Q holding will show to be considerably useful to the expansion and the event of the {industry},” mentioned Syed Basar Shueb, IHC’s CEO and Managing Director. “We envision this as a strategic alignment that won’t solely amplify our capability for distinctive actual property improvement but in addition successfully bridge the hole between tourism and actual property sectors that’s poised for additional progress and growth.”

As a part of the proposed transaction’s closing, Q Holding will difficulty a convertible instrument to ADQ and IHC Capital. This instrument will likely be transformed into roughly 9,491 million peculiar shares in Q Holding, with a conversion worth of Dh2.70 per share. The provide values Q Holding at roughly Dh18.5 billion. Following the completion of the transaction, ADQ and IHC Capital will maintain roughly 38.7 per cent and 19.4 per cent, respectively, of your complete issued share capital of Q Holding.

The advantages of this mix can be straight out there to public traders.

If the Board of Q Holding recommends continuing with the transaction, it is going to be topic to shareholder and regulatory approvals.

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