Author : Shuchita Bist
Amlak Finance PJSC and Tamweel PJSC, the two leading real estate finance providers in the UAE, have announced that they have begun exploratory discussions for a possible merger of their respective operations. Drawing upon the combined market expertise of the management teams and employees of both companies, a potential merger will bring significant benefits to the companies, shareholders and customers.
HE Nasser Bin Hassan Al-Shaikh, DG, Dubai Department of Finance & Chairman, Amlak Finance, said, "The resultant entity would have a combined balance sheet in excess of Dh27 billion and serve as a financial powerhouse with the increased critical mass required to lead the region's real estate finance markets to the next stage in their ongoing organic growth".
HE Sheikh Khaled bin Zayed bin Saqer Al-Nehayan, Chairman, Tamweel, said, "Amlak Finance is the pioneer in Sharia-compliant real estate finance in the UAE, with the largest balance sheet of any company in the sector, while Tamweel is the largest provider of real estate finance in the country by market share and is the highest-rated non-banking financial institution in the region. We hope to move the process forward quickly and efficiently with minimal disruption to our customers and employees."
To oversee the exploratory discussions for a possible merger, a joint steering committee chaired by HE Mohammed Ibrahim Al-Shaibani, CEO, Investment Corporation of Dubai, has been formed that will also include the Chairmen of both Amlak Finance and Tamweel. Subject to successful negotiations and agreement of terms between the respective Board of Directors, and applicable shareholder and regulatory approvals, the merger would be expected to close in early 2009. Goldman Sachs International has been asked to act as financial adviser.
Source : Press Release
