10 March 2010

DOHA: Sheikh Khalid bin Khalifa Al Thani yesterday said the proposed merger with Barwa is the logical development with a natural partner of Alaqaria.

"It will result, in our view, in the continued delivery of value for our shareholders whilst taking advantage of Barwa's growth potential, international presence and diversified activities," he said.

He said the agreed exchange ratio of 1.1 Barwa shares for each Alaqaria share represents a 30.6 percent premium over Alaqaria's share price on January 7, the trading day immediately prior to the first announcement of the initial terms of the proposed transaction.

For Alaqaria shareholders to benefit from this 30.6 percent premium, they must actively participate in the offer process with the closing date for acceptances set on April 14.

Sheikh Khalid urged the shareholders to attend the Alaqaria Extraordinary General Meeting (EGM) and vote in favour of the proposed resolutions.

He also called on Barwa shareholders to take on action in order for this transaction to proceed and asked to attend the Barwa EGM and vote in favour of the proposed resolutions. "This transaction represents an excellent strategic fit for Alaqaria and Barwa, and will result in significant benefits for employees, customers and shareholders of both companies. We look forward to working together following shareholder approval," said Alaqaria Chairman.

The shareholders' approval of the proposed transaction will be sought at EGMs of Barwa and Alaqaria to be held on March 30. "Today marks a very important milestone for this landmark transaction for Alaqaria and Barwa," said Sheikh Khalid. "Since the issuance of the Government directive asking our two companies to consider a potential combination, we have taken all the necessary steps to study and execute the transaction in accordance with international standards and best practice. Throughout this process, we have sought to protect the interests of the shareholders of both companies and to strengthen the image of Qatar as a regional and international financial centre."

He said the Boards of Alaqaria and Barwa have now approved the full terms of this proposed merger. The regulatory authorities have also given their approval for the transaction.

Today marks the opening of the offer period, he said. This provides Alaqaria shareholders with the opportunity to accept the offer that Barwa is making for the shares of Alaqaria.

He added that over the last few years, Alaqaria's management has consistently delivered value to its shareholders. "This is testament to the strength of the company's strategy, which is to deliver a sustainable and profitable business characterised by low risk, stable returns over the long run," he said.

By Nasser Al Harthy

© The peninsula 2010