NBAD and FGB merger progresses as boards of directors vote in favour

National Bank of Abu Dhabi and FGB said their boards have unanimously voted to recommend to their shareholders a merger of the two Abu Dhabi listed banks in what would create a lender with $175 billion in assets, the largest in the Middle East.

The banks are proposing that the deal be done through a share swap in which FGB shareholders will receive 1.254 NBAD shares for each FGB share, the banks said in a statement. That gives FGB shareholders a 3.9 per cent discount based on the closing share prices on June 30, it said. Shareholders however would first need to give the proposal the green light before it goes through.

Under the proposed terms, FGB shareholders would own about 52 per cent of the combined bank and NBAD shareholders the balance. It would leave the Government of Abu Dhabi and related entities with a 37 per cent interest in the bank. Shares of FGB would be delisted and the bank would be called National Bank of Abu Dhabi.

Abdulhamid Saeed, currently board member and managing director of FGB, would be the chief executive for the combined bank.

“Now, more than ever, the UAE will benefit from a strong, financial partner with the capacity to meet new challenges, drive domestic growth, and support the country’s ever-greater connections to the global economy,” said Nasser Ahmed Alsowaidi, chairman of NBAD.

“Expansion across fast growing emerging markets presents a vast business opportunity for our customers and for us, as a larger, stronger, combined bank. We will have the capital, expertise and international networks to be the preferred financial partner for anyone doing business along the West-East corridor.”

mkassem@thenational.ae

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