NBAD, FGB to trade as merged entity from April 2

National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) merger will take effect on April 1, with trading in shares of the new entity starting April 2, Abu Dhabi Securities Exchange (ADX) said in a statement posted on state news agency, WAM.

The exchange said it has completed the procedures for the unification of the records of the stakeholders in both banks and for ensuring there are no technical obstacles to the trading.

The indicative market price of the new shares will be calculated based on the last traded price of the shares of both banks in the market before the merger, ADX said.

Argaam had earlier reported that the two banks would be reporting the Q2-2017 financial results as a merged entity.

The shareholders of the both banks endorsed the merger in their respective general assembly meetings held in December.

NBAD shareholders also approved issuing of 1,254 new shares.

ADX said the latest data put the total assets of the two banks at AED 665.8 billion, as of end 2016. The merger will lead to the creation of the largest banking entity in the Middle East, it said.

Their financial statements showed combined deposits of AED 402.58 billion, while their combined loan value was AED 357.2 billion by the end of 2016.

Citing an unnamed study, the exchange said the merger will contribute to reducing the operating costs of the new entity by AED 500 million a year.

The study also showed that the interest cost would be realized within three years, while the estimated one-time business unification cost would be AED 600 million.