Abu Dhabi - Mubasher: Arkan Building Materials Company has completed its combination with Emirates Steel Industries, an integrated steel manufacturer, to form the UAE’s largest steel and building materials company.
The transaction provides revenue diversification for the combined group and marks the first time for investors to have access to a steel producer on a UAE public market, according to a press release on Wednesday.
The new group has strong potential to expand in the UAE and internationally.
Under the offer, Arkan issued to Senaat a convertible instrument, which converted into 5.1 billion ordinary Arkan shares.
It is noteworthy to mention that in September 2021, the board of Arkan approved the issuance of mandatory convertible bonds with a nominal value of AED 1 each to General Holding Corporation (Senaat) to acquire Emirates Steel Industries (Emirates Steel).
