KPMG signed up as valuer for planned Arkan-Emirates Steel Industries merger

The Abu Dhabi holding company ADQ has been foussing on consolidation in recent past. The Arkan and Emirates Steel Industries coming together will be the biggest one yet. Image Credit: Gulf News Archive

Dubai: KPMG has been signed up as independent valuer by Arkan Building Materials Co. to review the offer from Senaat – part of Abu Dhabi holding company ADQ – to merge with Emirates Steel Industries.

Arkan’s Board will refer to the valuation work of KPMG – along with work done by other advisors – in assessing the proposed offer before making a recommendation to shareholders.

The key terms of Senaat’s offer are to transfer Emirates Steel to Arkan through Arkan issuing a convertible instrument. On closing the transaction, the convertible instrument would automatically convert into around 5.1 billion ordinary shares at Dh0.798 a share in Arkan’s capital.

When applied to Senaat’s valuation of Emirates Steel, the offer implies an equity value for Arkan of approximately Dh1.4 billion. Post-completion, Senaat would own approximately 87.5 per cent of the entire issued share capital of the combined entity.