Abu Dhabi’s Eshraq Properties has shelved plans to acquire Reem Investments after being unable to come to a suitable agreement, the companies said on Tuesday.
“The strategic investment of Reem Investments in Eshraq Properties will not be completed,” Eshraq said in a statement to the Abu Dhabi Securities Exchange.
“Further to discussions and deliberations, the parties have not been able to agree on major commercial matters underpinning the deal.”
No further details were given.
The deal would have created the second largest listed real estate developer in Abu Dhabi.
In August 2017, Eshraq, which has a market capitalisation of AED 2.325 billion ($632.9 million) and the privately-owned Reem Investments, which has a paid-up capital of AED 1.55 billion ($421.9 million), announced that they were in “advanced talks” about the possible merger.
At the time, the two companies said the deal would be in the form of a subscription for new shares to be issued by Eshraq in return for Reem’s entire business and assets.
The statement added that their respective boards expect to achieve coast and operational synergies from the acquisition, from integrating their resources and expertise.
SHUAA Capital was said to be advising Eshraq on the potential acquisition, while First Abu Dhabi Bank was advising Reem.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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