Abu Dhabi – Mubasher: Abu Dhabi Financial Group (ADFG) is in advanced talks to acquire Shuaa Capital in a reverse merger, with expectations to be finalised by mid-April, sources familiar with the matter told Reuters on Tuesday.
ADFG, an alternative investment company with more than $20 billion in assets under management, will buy Shuaa in an all-share transaction.
The new entity will carry the name “Abu Dhabi Financial Group.”
The reverse merger allows the private firm to go public, avoiding the lengthy process of an initial public offering (IPO).
In March, ADFG and Shuaa have assigned UBS and JPMorgan Chase & Co as advisers for the potential merger.
“Discussions are at an advanced stage for the reverse listing of ADFG and to utilise synergies of both companies,” one of the source told Reuters.
The new entity will become a regional financial powerhouse with interests in real estate, financial services, insurance, and public markets.
However, both UBS and law firm Linklaters are working with Shuaa Capital over the deal, while New York-listed JP Morgan is working with ADFG.
It is worth noting that ADFG already owns a 48.36% stake in the Dubai-based company, Shuaa Capital.
The merger is expected to be highly successful on the back of ADFG’s appetite for snapping acquisitions, Mena Corp financial analyst Issam Kassabieh told Mubasher.
