Arkan Building Materials Company, a leading building materials company in the UAE, today announced that its board of directors has agreed to acquire Emirates Steel Industries, a leading integrated steel producer in the Middle East.
The Board has decided to recommend that Arkan shareholders approve the offer it received from General Holding Corporation (Senaat) last month to acquire its 100% Abu Dhabi-based Emirates Steel subsidiary.
The key terms of Senaat's offer are the transfer of Emirates Steel to Arkan in exchange for Arkan issuing a convertible tool to Senaat.
Upon closing, the convertible instrument is automatically converted into 5.1 billion Arkan common shares at a fixed price of AED 0.798 per share.
After the transformation, Senaat will own 87.5% of the total issued share capital of Arkan.
The combined company will be optimally positioned to capitalize on the recovery from the expected coronavirus in the UAE and regional construction sector, thanks to the expected acceleration of infrastructure projects as a result of various government incentive programs at the local and regional levels.
Emirates Steel is a state-of-the-art integrated steel mill that utilizes the latest in innovative manufacturing technologies. Located in the industrial sector of Abu Dhabi, the company produces high quality steel products of its own production, which are shipped and used around the world and delivered to the main world markets for the construction, engineering and energy sectors.