Abu Dhabi Financial Group agreed to acquire SHUAA Capital, the financial advisory and investment firm said in a statement Wednesday.
SHUAA will be fully integrated into the financial group, being rebranded as ADFG and headed by CEO Jassim Alseddiqi. The combined entity will hold $12.8 billion in assets under management.
Under the terms of the transaction, SHUAA will issue 1,470,720,000 new shares to ADFG's parent company, Abu Dhabi Capital Management, which will own 58% of the enlarged entity. The transaction, expected to complete in the third quarter has been approved by SHUAA's board of directors and is subject to SHUAA's shareholder approval on July 11 as well as standard regulatory approvals.
"The combined business will benefit from considerable synergies, an expansive distribution network and a deep pool of talent. All of this will help drive the business performance and create real and long-term sustainable value for shareholders of both companies," said SHUAA CEO Fawad Tariq Khan in a news release.
Mr. Alseddiqi added in the release: "This combination will enable us to leverage ADFG's pioneering products and services across a far broader distribution platform, bringing significant synergies to the enlarged entity."