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.
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.
