Abu Dhabi – Mubasher: Abu Dhabi Commercial Bank (ADCB) on Wednesday released a statement regarding its merger with Union National Bank (UNB).

Both UAE-based lenders will discuss risk factors that should be taken into account when considering whether to vote in favor of the combination resolutions to be considered at the ADCB general meeting (GM) and the UNB GM, according to ADCB’s statement to the Abu Dhabi Securities Exchange (ADX).

The GM of both banks will take place on 21 March for reviewing and, if appropriate, approving some resolutions regarding their activities and financial statements for the full-year 2018, the bank said.

The registered owners of shares as of the close of trading on 20 March shall be deemed to be the holders of the right to vote at the bank’s general assembly, ADCB noted.

The bank added that the merger will come into effect on 1 May.

Moreover, new shares will be issued in ADCB to the UNB shareholders in accordance with the merger exchange ratio and subject to the terms and conditions of the combination, the statement added.

The acquisition consideration will be satisfied by the issuance by ADCB to the Al Hilal Bank Shareholder of a Convertible Instrument on 1 May, convertible into up to 117,647,058 new ADCB shares, according to the statement.

In January, the three banks announced that the UAE would see a powerful new banking group after the merger.

The new banking entity will carry the ADCB identity and will continue to benefit from strong institutional backing, through the government of Abu Dhabi’s majority ownership.

By 12:12 pm UAE time, ADCB’s stock rose 0.11% at AED 9.44.