DUBAI: The Abu Dhabi sovereign fund ADQ has submitted an offer to merge two hospitality companies and form a larger entity with total assets of $5.4 billion.
The Abu Dhabi National Hotels company (ADNH) said it received the offer from ADQ to combine it with one of the fund’s units, the Abu Dhabi National Exhibitions Company (ADNEC).
ADQ has been linked to a number of deals in recent months as the conglomerate expands its holdings as part of a broader push by Abu Dhabi to expand into non-oil sectors.
Upon completion of the planned deal, the group would have 28 owned and operated hotels, three exhibition centers in Abu Dhabi, Al Ain, and London, as well as catering companies and food and beverage outlets.
ADNH will issue to ADQ a convertible instrument that would convert into 1.221 billion ordinary shares in the capital of ADNH at a price of 3.93 dirhams per share.
The merger will create “one of the largest hospitality, events, and catering powerhouses in the region,” ADQ said in a statement.
Abu Dhabi’s ADQ offers to combine two hospitality groups with $5.4bn in assets
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Abu Dhabi’s ADQ offers to combine two hospitality groups with $5.4bn in assets
- Abu Dhabi National Hotels said it received offer from ADQ to combine with one of the fund’s units, the Abu Dhabi National Exhibitions Company
