Abu Dhabi's Q Holding Board Approves Multi-Billion Dollar Acquisition Through Convertible Bonds

Abu Dhabi's Q Holding Board Approves Multi-Billion Dollar Acquisition Through Convertible Bonds

By Staff Writer, 24 November 2023

In a landmark decision, the board of directors at Q Holding, a company listed on the Abu Dhabi stock exchange, has given the green light for a major acquisition deal totaling AED 25.6 billion (approximately $6.9 billion).

The acquisition involves various companies and assets, including significant stakes in Modon Properties and the Abu Dhabi National Exhibitions Company (ADNEC), and will be facilitated through the issuance of convertible bonds.

The board's decision, finalized on Tuesday (21/11), entails the acquisition of the entire shareholding of ADQ Real Estate and Hospitality Investments LCC and IHC Capital Holding in the renowned Abu Dhabi-based real estate developer, Modon Properties PJSC.

Additionally, Q Holding will take over the ADQ subsidiary's shareholding in ADNEC as part of this comprehensive deal.

Among the other entities to be acquired are Miza Investments LLC, Sahel 1 Restricted Limited, Sahel 2 Restricted Limited, and Oryx Action Restricted Limited.

The deal also encompasses specific land plots, although precise locations were not disclosed in the information provided to the Abu Dhabi Securities Exchange (ADX).

To finance this ambitious acquisition, the Q Holding board has approved the issuance of 25.6 billion mandatory convertible bonds at AED 1 each.

Notably, AED 17 billion from this issuance will be allocated to ADQ Real Estate and Hospitality Investments, convertible into 6.3 billion new shares in the capital of Q Holding.

An additional AED 8.5 billion in convertible bonds will be directed to IHC Capital Holding LLC, convertible into AED 3.1 billion new shares in Q Holding.

In tandem with these financial maneuvers, the board has also sanctioned a special resolution to augment the company's capital from AED 6.8 billion to AED 16.3 billion.

This capital increase stems from the conversion of bonds into shares and reflects the strategic and financial dimensions of this substantial transaction.

Imogen Lillywhite / Zawya

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