ADCB and UNB shareholders greenlight mega-merger

ADCB and UNB shareholders greenlight mega-merger:

Shareholders of Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB) have given their approval for a merger of the two banks and then to acquire Al Hilal Bank, creating an entity with Dh6.1 billion in net profit.

At the separate ADCB and UNB annual general meetings on Thursday, shareholders approved the terms of the transaction, under which ADCB will issue convertible bonds to Al Hilal’s shareholders as the acquisition price paid by ADCB for the privately-held bank.

The bonds will be converted into over 117 million new shares in ADCB, increasing the share capital of the bank to up to Dh6.9 billion on conversion of the bonds. ADCB said at the meeting the acquisition of Al Hilal Bank is expected to close in the second quarter, having earlier said that the merger with UNB alone is likely to be effective only by May 1.