Abu Dhabi's Q Holding shareholders approve acquisition of Reem Investments

The ADX-listed investment company will acquire Reem in a share swap deal

Visitors look at a model of the Najmat project by Reem Investments at Cityscape Abu Dhabi. Ravindranath K / The National

Shareholders of Abu Dhabi-listed Q Holding have approved the acquisition of developer Reem Investments as part of its strategy to broaden its investment portfolio.

The acquisition will boost Q Holding’s asset base to more than Dh5.9 billion ($1.6bn). Q Holding is acquiring Reem Investments in exchange for new shares to be issued in the company. It did not give the value of the deal when the transaction was announced last week.

Q Holding shareholders approved the transaction at their general assembly meeting, both companies said in separate statements on Monday to the Abu Dhabi Securities Exchange, where their shares are traded.

The deal is part of "efforts to increase our investment portfolio and develop our business performance in line with the board of directors’ strategies to invest in selected industries to meet the local and international market need”, Abdulla Al Hamed, chairman of Q Holding, said.

In 2018, Eshraq Properties dropped plans to merge with Reem Investments after the two companies could not agree on the terms of the transaction.

Eshraq and Reem Investments announced a possible consolidation of their holdings in 2017, in a deal that would have created the emirate’s second-largest listed developer.

Reem Investments is a master developer and holds assets in locations including the Najmat on Al Reem Island and Rawdhat on Old Airport Road in the capital.

Q Holding, which was formerly known as Al Qudra Holding, will issue new shares, where 17.33 of the company’s shares will be allocated for each share acquired from Reem shareholders, it said in a bourse filing last week.

The company also announced an increase in its capital by issuing a maximum of 1.35bn new shares to Reem shareholders.

Q Holding invited shareholders of Reem to sign the share transfer deal, which must be completed and signed within two weeks.

“Q Holding’s acquisition of Reem Investments is part of a carefully thought-out strategic plan to support local, regional and international investment sectors by nurturing the next generation of entrepreneurs, disruptors and business leaders,” Majed Odeh, chief executive of Q Holding, said.

Established in 2005, Q Holding operates across sectors including real estate, services, hospitality and diversified investments through its 12 subsidiaries.