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Amlak Finance and Tamweel Announce Merger Talks

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Points of Essence:

  • UAE based real estate finance providers, Amlak Finance and Tamweel have announced their merger recently for a greater synergy in capturing the business opportunity in the UAE with the newly enhanced capacity in scale, fund, skills and products.

Dubai, With the blessing and support of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Amlak Finance PJSC and Tamweel PJSC- the two leading real estate finance providers in the UAE, both of which are listed on the Dubai Financial Market – announced today 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, including:

  • Creation of the leading real estate finance provider in the Middle East
  • Increased financial strength, size and scale to pursue the significant growth plans in the domestic and regional markets
  • Enhanced value proposition for customers through a larger and more efficient company with broader product capabilities

Meaningful expected operational and financial synergies resulting from the increased size, scale, funding and product capabilities

“The resultant entity would have a combined balance sheet in excess of AED 27 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”, said His Excellency Nasser Bin Hassan Al-Shaikh, Director-General of Dubai Department of Finance and Chairman of Amlak Finance.

“The opportunity to provide real estate finance solutions to businesses and individuals in the region has never been greater as the markets are expected to experience continued strong growth in the years to come,” he added. “A powerful market participant will be required to manage this growth both at home and internationally, and following the merger, the combined group will continue to execute this aggressive expansion strategy”.

His Excellency Sheikh Khaled bin Zayed bin Saqer Al-Nehayan, Chairman of Tamweel will call extraordinary general meetings to seek the approval of their respective shareholders for any proposed transaction.

Goldman Sachs International has been asked to act as financial adviser.


Note: See the related news from 24-7 , Gulfnews & Indian Times. Also a take from Washington Post.


Written by Suapi Shaffaii

October 4, 2008 at 10:37 pm

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