Abu Dhabi's ADQ, IHC propose wrapping real estate, events stakes into Q Holding (updated)
02/08/2023 08:39
(Adds response from Q Holding in paragraph 5, details in
paragraph 6-9)
DUBAI, Aug 2 (Reuters) - Abu Dhabi sovereign wealth fund
ADQ and a unit of local conglomerate IHC IHC.AD have submitted
an offer to wrap their shareholdings in Modon Properties into
IHC's Q Holding QHOLDING.AD .
ADQ will also add its shareholding in Abu Dhabi National
Exhibitions Company.
The proposed transaction would create one of the largest
real estate, hospitality, events, and catering platforms in the
region, ADQ and IHC said in a statement on Wednesday.
The combined group would have an implied market
capitalisation of approximately 44 billion dirhams ($11.98
billion), they said.
In a separate statement on Wednesday, Q Holding confirmed
receiving the offer from ADQ and IHC Capital, and said its board
will consider the proposed transaction before making any
recommendation to shareholders.
The transaction structure would see Q Holding issuing a
convertible instrument to ADQ and IHC Capital.
The instrument would convert into approximately 9,491
million ordinary shares in the capital of Q Holding at a price
of 2.70 dirhams per share.
The offer implies an equity valuation of approximately 18.5
billion dirhams for Q Holding.
ADQ and IHC Capital would own a respective 38.7% and 19.4%
of the entire issued share capital of Q Holding.
($1 = 3.6730 UAE dirham)
(Reporting by Hadeel Al Sayegh; Editing by Christopher Cushing)
((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))