Senaat eyes NPCC merger with NMDC

September 2020

Abu Dhabi’s General Holding Corporation (Senaat) along with other minority shareholders of National Petroleum Construction Company (NPCC) has submitted an offer to the board of National Marine Dredging Company (NMDC), a regional leader in dredging and marine construction, seeking merger of the companies.

NPCC is a world-class engineering, procurement and construction company that provides solutions to the offshore and onshore oil and gas sector.

The combined group would be one of the largest integrated oil and gas and marine services engineering, procurement and construction (EPC) players in the region with integrated 2019 revenue of Dh8.875 billion ($2.4 billion).

The offer sets out the principal terms and conditions by which Senaat, a part of ADQ – one of the region’s largest holding companies – and other minority shareholders of NPCC would transfer the latter to NMDC.

The proposed transaction would create a new national and regional integrated EPC giant with an established footprint in key markets within the Middle East and North Africa (Mena) and South Asia. It offers further value accretive elements to the combined group, including cost synergies as a result of economies of scale and scope as well as access to more bids.

As per the proposal, the entire issued share capital of NPCC would be transferred to NMDC. In consideration of this transfer, NMDC would issue to Senaat and other minority shareholders of NPCC a convertible instrument, convertible into 575 million ordinary shares in the combined group upon closing of the transaction.

By creating a single platform, the combined group is well positioned to capture growth opportunities in the UAE and in key regional markets, with strong capabilities across the value chain to support future expansion plans.

ADQ Chief Investment Officer and Senaat Chairman Khalifa Sultan Al Suwaidi says: “As one of the largest pan-regional EPC players, this transaction will create a larger, more diversified and financially flexible national champion. By bringing together two highly complementary businesses, we will be able to successfully drive increased growth while showcasing the very best of Abu Dhabi and its industry-leading capabilities on the global stage.”

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