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Emirates approves NBD merger

Shareholders of Emirates Bank International yesterday approved a Dubai government plan to combine it with National Bank of Dubai to form the Gulf's largest lender by assets in an $11.3 billion deal.

Investors owning about 91% of Emirates Bank stock approved the deal at a meeting in Dubai.
"We want to create one of the largest banks in the Middle East," Chairman Ahmed al-Tayer told reporters at the meeting. "It's one of the requirements on how we can compete with international banks, and match the requirement of financing projects and the cost of management and IT."

The Dubai government owns 76.62% of Emirates Bank and 14.25 percent of NBD, the smaller of the two lenders.

Shareholders of NBD will meet today to vote on the plan which will give the Dubai government 56% of the new lender.

If they agree to the merge, Emirates NBD will be formally established on October 14, with Emirates bank shareholders gaining a 66.3% stake and NBD a 33.7% stake in the new lender.

Each share of NBD will be exchanged for 0.95 shares in Emirates NBD. Emirates Bank shareholders will get one share in the new lender for a each share they own.

EBI and NBD shareholders who have not yet tendered their shares, and wish to do so, should complete the form of acceptance in accordance with the process set out in the offer document distributed to shareholders in July.

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