Abu Dhabi are planning to form the largest steel and building materials company in the UAE.
Using ADQ, one of Abu Dhabi’s three sovereign wealth funds, Abu Dhabi plan to combine Emirates Steels Industries PJSC with Arkan Building Materials Co to set up a single entity accumulating total assets worth around $ 3.54 billion.
ADQ, which was founded in 2018, has rapidly grown since its incorporation, it now sits within the world’s top 20 sovereign wealth funds and places itself as the UAE capital’s third largest behind Abu Dhabi Investment Authority and Mubadala Investment Co.
Arkan will issue a convertible instrument to ADQ controlled Senaat. Arkan holding will account for total value of approx. 1.4 billion dirhams, and Senaat will own approx. 87.5% of the group, post completion.
According to Senaat, this will be the first time that investors are able to access a steel manufacturer on the UAE public market.
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