Dubai: KPMG has been reported as an independent valuer by Arkan Building Materials Co. to review the Senate’s offer – part of Abu Dhabi holding company ADQ – to merge with Emirates Steel Industries. Arkan’s board will refer to KPMG’s valuation work – along with work done by other advisers – to review the proposed offer before making a recommendation to shareholders.
The most important stipulation of the Senate’s offer is to transfer Emirates Steel to Arkan through Arkan issuing a convertible instrument. Upon completion of the transaction, the convertible instrument will automatically convert into approximately 5.1 billion ordinary shares at Dh0,798 per share in Arkan’s capital. When presented at Senate Emirates Steel’s valuation, the offer implies an equity value for Arkan of approximately Dh1.4 billion. Upon completion, Senate would own approximately 87.5 percent of the total issued share capital of the combined entity.