Abu Dhabi: The National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) announced they will each hold a general assembly meeting on December 7 to ask for shareholders’ approval of the proposed merger between the two banks.
In a statement issued to Abu Dhabi Securities Exchange (ADX), FGB said it will also ask for shareholder approval for the dissolution of the bank and the termination of its corporate personality as NBAD will become the legal successor.
The banks are expected to merge in the first quarter of 2017, with the new entity set to retain the brand name of the National Bank of Abu Dhabi. FGB will also be delisted from the stock exchange.
In July this year, the boards of directors of each bank approved the merger plan that will create the Middle East and North Africa’s largest bank, with assets worth Dh642 billion.
During each of the meetings on December 7, the banks will ask for their respective shareholders’ approval on certain terms of the merger such as the share swap whereby FGB shareholders will get 1.254 NBAD shares for each FGB share they own. They will also ask for approval to increase share capital, amend articles of association, and appoint members for the board of directors.
On Sunday, NBAD’s share prices ended trade 2.28 per cent higher at Dh8.53.