The International Holding Company (IHC) has formally agreed the merger of its subsidiary Al Tamouh Investments with Al Qudra Holding, local reports have said.
The transaction will be completed through the transfer of shares in Al Tamouh Investments in return for unsecured mandatory convertible bonds issued by Al Qudra Holding, said the reports.
In parallel, the Board of Directors of Al Qudra Holdings has approved a new foreign ownership limit of 30 percent of outstanding shares.
However, this is subject to regulatory approvals.
Previously, only UAE nationals were permitted to own shares in the company.
Syed Basar Shueb, CEO & Managing Director and Board Member of IHC, was quoted by the local reports as saying about the merger: “We believe this provides a solid financial and operational platform for further growth.”
Abdulla Bin Mohamed Bin Butti Al Hamed, Chairman of Al Qudra Holding said the decision to introduce the potential for foreign ownership “paves the way for a widening of the shareholder base in future.”
Based in Abu Dhabi, Tamouh is a real-estate developer launched in 2007 with projects apparently aimed to shape the future of the capital.
The company is a primary developer of a number of projects including Marina Square, the City of Lights, Fantasy Island, Meena Hotel and Towers, and the Royal Group Headquarters.
Al Qudra Holding PJSC operates as an investment holding company.
Through its subsidiaries, Al Qudra reportedly focuses its investments and strategic partnerships in nationally essential sectors, such as oil and gas, banking and finance.
As part of its diversification strategy, the company has investments in selected industries, such as real estate, services, and hospitality.