Investment Holding Group (IHG) held the Ordinary and Extraordinary General Assembly meeting on Monday. The extraordinary assembly took the decision to approve the acquisition of Elegancia Group (Elegancia) by way of a share swap.
The acquisition of Elegancia will play a major role in the expansion of the company through venturing into new business sectors namely healthcare, services, contracting and industries.
The company will have access to a bigger and more diverse customer base and will drive growth both in Qatar and abroad which in turn will increase shareholder value.
The IHG general assembly approved the summary of the acquisition agreement entered into between IHG and Elegancia dated March 10, 2022, including as an annexe the agreement between IHG and the Elegancia and approved the process that resulted in the agreed Share Swap Ratio.
It approved the increase of the authorised and paid-up share capital of IHG by QR2,574,037,500 from QR830,000,000 to QR3,404,037,500.
The general assembly approved the issuance of new shares in IHG to the Elegancia Owners in consideration for their shares in Elegancia on the basis of the following: for every one IHG share currently in issue, the Elegancia Owners will receive 3.10125 new IHG shares, whereby IHG represents 24 percent of the combined business, and Elegancia 76 percent.
Accordingly, the general assembly approved that the value of IHG is QR860,000,000 for at the agreed ratio implied and the value of Elegancia is QR2,667,000,000, subject to obtaining all regulatory approvals and satisfying all the conditions set out in the acquisition agreement.
It approved the waiver of any applicable subscription rights pertaining to the capital increase of IHG.
It approved the exemption of Elegancia from submitting a compulsory offer to purchase the shares of IHG Shareholders in accordance with the QFMA M& A Rules and approved the subsequent sale by the Elegancia Owners of at least 6 percent of the New IHG Shares over a period of three months following completion.
The general assembly approved to appoint an exchange agent to facilitate the issuance of the New IHG Shares in accordance with the Share Swap and submit all required documents and applications to Qatar Stock Exchange for the listing of the New IHG Shares on the QSE.
Also, the ordinary assembly of IHG was held to elect seven non-independent and four independent members of the Board of Directors, followed by a meeting of the new Board of Directors.
Since 2008, IHG has grown into one of the leading conglomerates in Qatar with its shares publicly traded on the QSE since 2017. It operates in construction and contracting, specialized contracting, supply of building materials, safety equipment, wooden products, fire-fighting systems, food, chemicals, consumable supplies, and real estate.
Elegancia Group is a dynamic consortium of companies offering reliable, sustainable, and quality services to companies across a diverse range of sectors, including healthcare, business, contracting and other services. Recently, Elegancia’s healthcare division announced a partnership with Los Angeles-based non-profit academic healthcare organization, Cedars Sinai, to operate a state-of-the-art hospital located in Al Qutaifiya, near The Pearl.
Qatar’s first-ever reverse acquisition supports economic diversification, in line with the country’s national development goals. As one of Qatar’s leading group consortiums, Elegancia’s maturing domestic and international exposure will positively impact stakeholder value to generate sustainable growth for the national economy.
IHG general assembly approves acquisition of Elegancia
April 13, 2022