Font Size

- Aa +

Tue 31 Jul 2007 12:54 AM

Font Size

- Aa +

EBI, NBD shareholders to decide on merger by September

Shareholders have until September 17 to decide on government plan to create the Gulf's largest bank.

Shareholders of Emirates Bank International Ltd. and National Bank of Dubai have until Sept. 17 to decide on a government plan to combine the two banks, the lenders said on Monday.

The banks agreed earlier this month to an $11.3 billion deal to create the Gulf's largest bank by assets at the behest of Dubai's ruler.

The combined entity, Emirates NBD, will be created on Oct. 14 if shareholders agree, the banks said in a joint statement.

Shares of the lenders will stop trading on the Dubai bourse on Oct. 7. Emirates NBD shares will list on Oct. 14.

The government of Dubai, which owns 76.62 % of Emirates Bank and 14.25 % of National Bank, intends to accept the offer, the banks said.

Shareholders can begin accepting the offer on Aug. 1, they said. Emirates Bank will hold a shareholder meeting on Sept. 5 and National Bank on Sept. 6.

Investors owning shares in the two banks on Sept. 2 would be eligible to vote on the all-share deal, which will give Emirates Bank shareholders a 66.3 % stake and National Bank a 33.7 % stake in the new lender.

The Dubai government will own 56 % of Emirates NBD.

Emirates Bank shareholders will swap their stock for the new bank's shares on a one-for-one basis at 9.30 dirhams ($2.53), while National Bank shares will be exchanged at 8.84 dirhams.