UAE’s ADFG to take over Shuaa Capital in reverse merger by mid-April

Abu Dhabi Financial Group (ADFG) is set to take over Shuaa Capital in a reverse merger, two sources familiar with the matter said on Tuesday.

ADFG, an alternative investment company with more than $20bn in assets under management, already owns 48.36 per cent of Shuaa, according to Refinitiv data.

It will take over Shuaa in an all-share transaction with the new company to be named Abu Dhabi Financial Group, with the deal to be finalised by mid-April, the sources said, declining to be named as the matter is not yet public.

ADFG and Shuaa declined to comment.

A reverse takeover allows a private firm go public after acquiring a controlling stake in a listed company, avoiding the lengthy process of an initial public offering (IPO).

“Discussions are at an advanced stage for the reverse listing of ADFG and to utilize synergies of both companies,” one of the sources said.

Last month, Dubai-listed Shuaa disclosed it had started talks on a possible merger with ADFG.

With the potential merger, ADFG aims to become a regional financial powerhouse with interests in real estate, financial services, insurance and public markets, sources had previously told Reuters.

UBS and law firm Linklaters are working with Shuaa Capital, while New York-listed JP Morgan is working with ADFG.