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Three Abu Dhabi lenders agree to merge, creating a $114 bln bank

Published 29/01/2019, 10:00 pm
© Reuters.  Three Abu Dhabi lenders agree to merge, creating a $114 bln bank

DUBAI, Jan 29 (Reuters) - Abu Dhabi Commercial Bank ADCB.AD , Union National Bank UNB.AD and Al Hilal Bank said on Tuesday the banks have agreed on a three-way merger, creating the third-largest bank in the United Arab Emirates.

Under the deal, ADCB will issue 0.5966 shares for every UNB share, corresponding to a total of 1.64 billion new shares issued to UNB shareholders. The exchange ratio implies a premium to UNB shareholders of 0.6 percent versus the closing price of the previous trading day, the statement said, valuing UNB at nearly $4 billion. Al Hilal Bank will operate as a separate Islamic entity within the merged bank.

The banks announced in September that they were in preliminary talks about a three-way merger, which will create a bank with assets of $114 billion.

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