Page 58 - Magazine August 2021

Companies News Contractors News

Arkan shareholders approve plan to

merge with Emirates Steel

Arkan Building Materials Company says strategic

combination is set to close later this year

Arkan Building Materials Company (Arkan) has have received their support to move forward with
announced that it has won approval from its the strategic combination of Arkan and Emirates

shareholders for its strategic merger with Emirates Steel. The transaction will offer investors access
Steel Industries, the Middle East’s leading integrated to a national and regional champion in the building
steel manufacturer. materials and construction sector, that is well placed

A leading construction and building materials for opportunities that emerge from the economic
company in the UAE, Arkan said the transaction recovery that lies ahead.»

will create a listed national champion in the According to him, the combined group will benefit
building materials and construction sector from a strengthened balance sheet and operational
with strong potential for growth in the UAE and scale.

internationally. «In particular, it will play a key role in supporting
Emirates Steel is owned by General Holding the sustainable economic growth targets outlined in

Corporation (Senaat), a part of ADQ, one of the the UAE’s Industrial Strategy ‘Operation 300 Billon’,
region’s largest holding companies. building on Emirates Steel’s position as a leading

The key terms of the strategic combination, proposed industrial player that adopts the latest technologies
in May by Senaat, are to transfer Emirates Steel to in steel production, quality control and sustainability

Arkan in consideration for the issuance by Arkan to practices,» he stated.
Senaat of a convertible instrument. Arkan said the combined group will also be ideally
Upon closing the transaction, the convertible positioned to benefit from the post-Covid recovery

instrument would automatically convert into 5.1 anticipated in the UAE’s and the region’s construction
billion ordinary shares in Arkan at a fixed price of sectors, particularly in light of the stimulus packages

AED 0.798 per share. Following the conversion, being introduced by the regional governments to
Senaat would own 87.5% of the entire issued share accelerate infrastructure projects.

capital of Arkan. The transaction is expected to close later this year,
Lauding the shareholders› move, Chairman Engineer until then, both companies will continue to operate

Jamal Salem Al Dhaheri said: «We are pleased to independently, it added.

22 23