12 hours ago
E7 Group offers to buy all outstanding warrants at Dh2.40 each
20 Aug 2025 13:34
A. SREENIVASA REDDY (ABU DHABI)E7 Group, a public joint stock company listed on the Abu Dhabi Securities Exchange (ADX), has launched a voluntary cash offer to acquire all of its outstanding warrants at a price of Dh2.40 per warrant. A circular to this effect was posted on the website of ADX. The warrants were originally issued in May 2022 as part of the company's initial public offering, and the offer period runs from August 20 until October 20, 2025. Warrants are financial instruments that entitle holders to purchase shares of a company at a fixed price within a certain timeframe. In the case of E7 Group, each warrant gives the right to buy ten shares at a price of Dh1.15 per share. However, if not exercised, these warrants will automatically expire and become worthless at 5pm on December 6, 2026, three years after the completion of the company's business company's board explained that the buyback is designed to provide warrant holders with immediate and certain value, eliminating the risk of holding an instrument subject to market volatility or the possibility of expiring without present, there are 22,937,500 outstanding warrants. The offer price of Dh2.40 compares favourably with the company's stated right, after the current period ends, to still purchase untendered warrants at a substantially reduced price not exceeding seventy-five fils per warrant.E7 Group stressed that the proposal is in the best interests of investors, as it not only delivers cash value but also simplifies its capital structure and enhances transparency, which the board said would strengthen the company's profile and support future share value. Having considered the prevailing market conditions and the financial terms of the proposal, the board unanimously recommended that all warrant holders accept the offer by submitting sell orders before the closing board also confirmed that the company will finance the offer entirely from its existing cash resources and voluntary reserves, in line with Article 242 of the Companies Law and a resolution of its general assembly that permits the transfer of amounts from the share premium account into voluntary reserves to fund warrant repurchases. For the execution of the offer, E7 Group has appointed International Securities to act on its behalf in receiving sell orders and settling cash considerations. Cash payments to warrant holders who accept will be made within two business days after completion of the relevant holders retain the right, should they choose not to accept the current offer, to hold their instruments and exercise them before the expiry date to purchase shares at the set the company has underlined that this involves the risk of the warrants becoming valueless in December 2026. By contrast, the present cash offer of Dh2.40 provides certainty of return, which the company believes is fair and compelling under current market circumstances.
E7 Group is a leading business in security solutions, commercial printing, packaging, logistics, and fulfilment in the UAE, and is valued at Dh 3.23 billion based on its current share price.
