Abu Dhabi - Mubasher: Arkan Building Materials Company has received an offer from General Holding Corporation (Senaat), a part of ADQ, to transfer its wholly-owned subsidiary, Emirates Steel Industries (Emirates Steel), to Arkan.

Under the offer's terms, Arkan would issue to Senaat a convertible instrument to combine with Emirates Steel, according to a bourse filing on Sunday.

At a fixed price of AED 0.798 per share, the issued instrument would automatically convert into around 5.1 billion ordinary shares in Arkan's capital upon closing of the transaction.

Upon applying Senaat’s valuation of Emirates Steel, the offer implies an equity value for Arkan of around AED 1.4 billion.

Following the completion of the transaction, Senaat would own about 87.5% of the entire issued share capital of the combined group.

The offer is subject to all relevant governmental approvals, including regulatory approvals by the Securities and Commodities Authority (SCA), and shareholders.