Future of NBAD-FGB union in Dec
abu dhabi — The shareholders of National Bank of Abu Dhabi (NBAD), the UAE’s second biggest lender by assets, and First Gulf Bank (FGB) will meet separately on December 7 in the capital to vote for a mega merger.
NBAD and FGB have sent out invitations to their respective shareholders to attend the general assembly meeting to get their consent on the merger that will have combined market capitalisation of Dh106.9 billion.
FGB shareholders need to approve a scheme of 1.254 new NBAD shares for each FGB share. Other items on the agenda are the approval of the merger agreement by NBAD and FGB and approval of the company’s dissolution.
On the same day, NBAD shareholders will meet separately to approve the merger scheme. They also need to approve an increase in paid-up capital to Dh10,897,545,318 from Dh5,254,545,318.
The NBAD shareholders will also vote for a new board of directors comprising Shaikh Tahnoon bin Zayed Al Nahyan, Nasser Ahmed Al Sowaidi, Shaikh Mohammed bin Saif bin Mohammed Al Nahyan, Khaldoon Khalifa Al Mubarak, Shaikh Ahmed Mohammed Sultan Al Dhaheri and Mohammed Thani Al Romaithi. Others who are part of the new board include Khalifa Sultan Al Suwaidi, Jassim Mohammed Al Siddiqi and Mohamed Saif Al Suwaidi.
The merger of FGB and NBAD is part of Abu Dhabi’s ambitious reform agenda which began 12 years ago with the corporatisation of the electricity and water sector. The reforms, the first of its kind in the Mena region, saw the development of a vibrant energy sector that racked in Dh36 billion from local and foreign investment.
Pushing the reforms programme, Abu Dhabi this month reveled plans to merge Abu Dhabi Marine Operating Company and Zadco, the two oil production arms of the Abu Dhabi National Oil Company, to drive economic benefits from synergies.
Similarly, Adnoc’s shipping, oil tanker and marine services arms were also brought under the reforms programme, to merge into one entity in two years to make it a cost-efficient enterprise.
Last year, the economic reforms saw removal of subsidies on electricity and water tariffs in the emirate in a phased manner. Now, all consumers, including UAE nationals, who had earlier benefited from nominal electricity and water charges have started paying for the cost of energy.
The impact of these reforms has been positive on public finances, at a time when revenues from oil exports have dipped and budgetary allocations have seen reviews.
After the financial and energy sectors, Abu Dhabi is working on merging its three science and technology centres of excellences. The merger will bring the Masdar Institute of Science and Technology, the Petroleum Institute and Khalifa University of Science and Technology to work under one institution in two years.