Abu Dhabi – Mubasher: The ordinary general meeting (OGM) of National Marine Dredging Company (NMDC) has approved the company's merger with National Petroleum Construction Company (NPCC).

Under the transaction, General Holding Company (Senaat) and the other minority shareholders of NPCC will transfer the entire issued share capital of NPCC to NMDC, according to the company's disclosure to the Abu Dhabi Securities Exchange (ADX) on Tuesday.

In exchange, NMDC will issue mandatory convertible bonds with a nominal value of AED 1 each in an aggregate amount of AED 2.53 billion to Senaat and the other minority shareholders of NPCC.

These bonds will be converted into 575 million new shares in NMDC with a nominal value of AED 1 each, increasing the issued capital of NMDC to AED 825 million from AED 250 million.

The transaction is subject to regulatory and other approvals, including approval by the KSA General Authority for Competition and the UAE Securities and Commodities Authority (SCA).

Commenting on the acquisition, the Chief Investment Officer at ADQ and Chairman of Senaat, Khalifa Sultan Al Suwaidi, said: "The transaction will create one of the largest and most diversified EPC players in the region, and the complementary nature of the businesses provides a strong platform to capture growth opportunities."

It is noteworthy to mention that in August, NMDC received an offer from Senaat and other minority shareholders to acquire NPCC.