Offshore staff
ABU DHABI, UAE – Shareholders in National Petroleum Construction Co. (NPCC) have proposed a merger with marine construction specialist National Marine Dredging Co. (NMDC).
The proposed transaction would create one of the largest integrated oil and gas and marine services EPC players in the MENA, region with combined 2019 revenues of AED 8.875 billion ($2.4 billion).
H.E. Khalifa Sultan Al Suwaidi, chief investment officer at ADQ and chairman of Senaat, NPCC’s largest shareholder, said: “As one of the largest pan-regional EPC players, this transaction will create a larger, more diversified and financially flexible national champion.”
Under the proposal, Senaat and other minority shareholders of NPCC would transfer the company’s entire issued share capital to NMDC. In return, NMDC would issue to Senaat and the other shareholders an arrangement convertible into 575,000,000 ordinary shares in the combined group upon closure, valued at AED 4.40 ($1.198) per share.
The offer implies an equity value of NMDC of AED 1.1 billion ($300 million).
If NMDC’s board recommend the offer and its shareholders vote in favor, the deal could close toward the end of this year, subject to regulatory approvals.
08/17/2020
