Merged NBAD- FGB to get a larger representation on emerging market index: ADX CEO

ABU DHABI, — The merger of the National Bank of Abu Dhabi (NBAD) and the First Gulf bank (FGB) will leave the newly integrated entity with a larger representation on the MSCI Emerging Markets index, triggering massive cash inflows to the stock, according to Rashid Al Baloushi, CEO of Abu Dhabi Securities Exchange, ADX.

Speaking to Emirates News Agency, WAM, Al Baloushi expected a considerable increase in foreign investment in the new share over the coming period, which will translate into more inflow to the stocks.

Thursday 30th March marks the last day of trading in FGB before its combination with NBAD. The newly integrated entity starts trading on 2nd April, 2017, as per Abu Dhabi Securities and Commodities Authority’s approval, with FGB stockholders receiving 1.254 shares for each one they own before the merger.

For technical considerations related to the procedures taken for the unification of the records of the two banks’ stakeholders in the new entity, it has been decided that FGB’s shares will be delisted from the stock exchange today, 30th March, 2017.

As per ADX instructions, the reference rate of NBAD’s shares on the trading session of Sunday, April 2nd, will be its last price traded on 30th March, which is AED 10.25.

ADX CEO said in a statement, to all parties concerned the new shares of NBAD owned by FGB’s shareholders will be available in their accounts on Sunday, 2nd April. And in case the FGB shareholders’ stocks are enlisted through brokerage companies, the alternative stocks will be found on the same account.

“But should the stocks be through the clearinghouse exchange, the alternative shares will be likewise available on a shareholder’s account at the clear house exchange,” it added.

Source: Emirates News Agency