The United Arab Emirates’ National Petroleum Construction Company (NPCC) announced Sunday that it has submitted a merging offer to the Board of National Marine Dredging Company (NMDC).
The offer would create a new national and regional integrated Engineering, Procurement and Construction (EPC) champion with an established footprint in key markets within the Middle East and North Africa (MENA) region, reported the state news agency (WAM).
“The combined group would be one of the largest integrated oil and gas and marine services EPC players in the MENA region with integrated 2019 revenue of AED8.875 billion.
“It aims at maintaining NMDC’s existing listing by positioning the combined group as one of the largest companies on the Abu Dhabi Securities Exchange (ADX), which is expected to have a positive impact on overall demand and liquidity for the combined group’s shares,” read a joint press release.
The offer’s main articles stipulate transferring NPCC’s entire issued share capital to NMDC.
While NMDC, in return, would issue a convertible instrument into 575 million ordinary shares in the combined group upon closing the transaction.
The price at which the convertible instrument will convert into shares in NMDC is AED4.40 per share, and the offer implies an equity value of NMDC at AED1.1 billion.
If NMDC’s Board recommends the offer and its shareholders vote in its favor, the deal is expected to be concluded by the end of 2020, on condition of receiving all required regulatory approvals.
