Q Holding shareholders approve Reem Investments deal
Shareholders of Abu Dhabilisted Q Holding have approved the acquisition of developer Reem Investments as part of its strategy to broaden its investment portfolio.
The acquisition will boost Q Holding’s asset base to more than Dh5.9 billion ($1.6bn). Q Holding is acquiring Reem Investments in exchange for new shares to be issued in the company. It did not give the value of the deal when the transaction was announced last week.
Q Holding shareholders approved the transaction at their general assembly meeting, the companies said in separate statements yesterday.
The deal is part of “efforts to increase our investment portfolio and develop our business performance in line with the board of directors’ strategies to invest in selected industries to meet the local and international market need”, said Abdulla Al Hamed, chairman of Q Holding. In 2018, Eshraq
Properties dropped plans to merge with Reem Investments after the two companies could not agree on the terms of the transaction.
Eshraq and Reem Investments announced a possible consolidation of their holdings in 2017, in a deal that would have created the emirate’s second-largest listed developer.
Reem Investments is a master developer and holds assets in locations including the Najmat on Al Reem Island and Rawdhat on Old Airport Road in the capital. Q Holding, which was formerly known as Al Qudra Holding, will issue new shares, where 17.33 of the company’s shares will be allocated for each share acquired from Reem shareholders, it informed the Abu Dhabi Securities Exchange last week.
The company also announced an increase in its capital by issuing a maximum of 1.35bn new shares to Reem shareholders.
Q Holding invited shareholders of Reem to sign the share transfer deal, which must be completed and signed within two weeks. “Q Holding’s acquisition of Reem Investments is part of a carefully thought-out strategic plan to support local, regional and international investment sectors by nurturing the next generation of entrepreneurs, disrupters and business leaders,” Majed Odeh, chief executive of Q Holding, said.
Established in 2005, Q Holding operates across sectors including property, services, hospitality. The company has diversified investments through its 12 subsidiaries.