Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
The Board of Directors of Emirates Islamic Bank (EIB) has unanimously recommended that shareholders accept the acquisition offer made by Emirates NBD. The recommendation follows an independent valuation report conducted by KPMG, which was appointed as EIB’s financial advisor to assess the fairness of the offer, a stock market disclosure by EIB said on Wednesday.
“Taking into consideration the valuation range of EIB, as recommended by the EIB Board, the valuation report, and EIB's current cash position, liabilities and near-term general conditions, the Board are unanimously of the opinion that the offer is appropriate and reasonable,” the stock market statement said.
Under the terms of the mandatory cash offer, Emirates NBD has proposed acquiring 100% of EIB’s shares at a price of Dh11.95 per share. Emirates NBD already holds 99.89% stake in the EIB.
KPMG’s valuation report determined that the fair value for EIB’s shares ranges between Dh3.68 and Dh4.06 per share, supporting the Board’s view that the offer represents a favourable opportunity for shareholders.
In its statement, the Board said that the recommendation was made after a thorough assessment of financial conditions, regulatory requirements and the strategic implications of the transaction. The offer aligns with market regulations set by the UAE’s Securities and Commodities Authority (SCA) and is expected to enhance synergies between Emirates Islamic and Emirates NBD.
Shareholders who wish to accept the offer must submit their acceptance and transfer forms by 2 pm on March 27, 2025. Under the prevailing rules on the acquisitions, the shares of those who refused to accept the offer will be mandatorily acquired by the Emirates NBD. It may be noted here that the Emirates NBD already holds 98.89% of shares in EIB.
EIB will continue to maintain its separate identity and trade registration but will be delisted from the DFM once the takeover process is completed.
