The boards of directors at First Gulf Bank (FGB) and the National Bank of Abu Dhabi (NBAD) have approved the merger of both entities in the first quarter of 2017.
The move, which is yet to be approved by shareholders, will create an entity with Dh642 billion in total assets, making the combined bank the largest in the Middle East and North Africa.
The merger will be executed through a share swap, with FGB shareholders receiving 1.254 NBAD shares for each FGB share they hold.
Both banks will continue to operate independently until the merger becomes effective in Q1 2017, and the on the date of the merger, FGB’s share will be delisted from the Abu Dhabi Securities Exchange.
Following the issue of the new NBAD shares, FGB shareholders will own approximately 52 per cent of the combined bank and NBAD shareholders will own approximately 48 percent. The Government of Abu Dhabi and related entities will own approximately 37 percent.
By Sarah Diaa
