Dubai – Mubasher: Alsafwa Islamic Financial Services said, in a bourse filing to Dubai Financial Market on Monday its decision to merge with Mubasher Financial Services (MFS) is aimed to boost its competitiveness and increase its market share.
The merger decision came upon an offer from MFS, dated 30 November, to amalgamate with the company, Alsafwa added.
Truth Economic Consultancy was hired to set a mechanism for the merger process in coordination with related authorities including the Ministry of Commerce, Securities and Commodities Authority (SCA) and other related economic bodies, according to Alsafwa.
Accordingly, MFS (merged company) will be added to Alsafwa (merging company).
Alsafwa expected the merger process to take not more than four month as of the date of announcement.
The Dubai-listed company stressed that the merger would have no impact on its current structure, adding that a new board of directors will be appointed while most employees of both companies will be maintained.
Truth Economic Consultancy is the administrative partner for the merger process.
Alsafwa also said it will continue to be listed on DFM, while its capital will be raised through issuing new shares for MFS at a value of AED 1 each. The company’s articles of incorporation will be amended accordingly after obtaining approvals from competent authorities.
The company said it will inform DFM management duly of any related updates.
