National Bank of Abu Dhabi (NBAD) secured shareholders’ assent to merge with First Gulf Bank (FGB) at a meeting on Wednesday, a spokesman for NBAD said.
First Gulf Bank also secured shareholders’ approval on Wednesday, FGB’s chief executive Andre Sayegh said.
The pair announced in July that their boards had approved the tie-up, which will create one of the largest banks in the Middle East and Africa with assets of around $175 billion.
Sheikh Tahnoon Bin Zayed Al Nahyan, chairman of FGB, said: “The overwhelming vote of support from FGB and NBAD shareholders to approve this historic merger is a clear testament to the compelling rationale and value proposition for creating a bank with the financial strength, scale and expertise to deliver benefits for our customers, our shareholders and for the wider UAE economy.”
Nasser Ahmed Alsowaidi, chairman of NBAD, added: “The resounding endorsement for the combined bank from both sets of shareholders represents a significant milestone. The new larger bank will be in an excellent position to invest in our people, in technology, in products and services that our increasingly sophisticated client base demands, while capitalising on growth opportunities in the UAE and beyond”.
Following the issue of new NBAD shares, FGB shareholders will own approximately 52 percent of the combined bank, with NBAD shareholders owning approximately 48 percent. The Government of Abu Dhabi and Government-related entities will own approximately 37 percent of the merged entity.
The merger is expected to take effect towards the end of the first quarter of 2017.
* With Reuters