Abu Dhabi’s Eshraq Investments to buy all of Goldilocks fund in all-share deal

Abu Dhabi’s Eshraq Investments to buy all of Goldilocks fund in all-share deal

Dubai: Abu Dhabi based asset management firm Eshraq Investments is taking full ownership of Goldilocks Investment Company Ltd. in a transaction with Dubai’s Shuaa Capital. The latter currently manages Goldilocks through a subsidiary, Shuaa GMC Ltd.. After the acquisition, Eshraq Investments will have combined assets of more than Dh3.8 billion ($ 1.03 billion). A statement issued by Eshraq Investments said: “The proposed transaction is a win-win for both Eshraq and Goldilocks’ shareholders, particularly in terms of investment portfolio diversification and increased liquidity. Most importantly, the acquisition of a high-performing fund like Goldilocks will enable Eshraq to increase its profitability, improve its share price and positions the company for strong business performance, while creating tangible and long-term sustainable value for Eshraq shareholders. “We also expect the transaction to give us access to profitable deal flow at an early stage.” Under the terms, Eshraq will issue new shares to existing Goldilocks investors in exchange for their stake in the Fund. The transaction values Eshraq at 40.6 fils per share, a 37.8 per cent premium to Eshraq’s closing price on March 28. The non-cash transaction has already bagged the approval of the regulator, the Securities and Commodities Authority, and Eshraq’s Board of Directors.