BILDCO Signs Strategic MoU to Acquire 50% Stake in AG Group, Marking Major Business Transformation

Abu Dhabi National Company for Building Materials PJSC (BILDCO), a company listed on the Abu Dhabi Securities Exchange (ADX), has signed a strategic framework memorandum of understanding (MoU) to acquire a 50% equity stake in AG Group. The MoU, signed in Abu Dhabi, outlines a proposed transaction that would make BILDCO a strategic 50% shareholder in the diversified business group and is positioned as a key step in BILDCO’s planned transformation into a diversified investment holding company. The deal remains conditional on shareholder approval at BILDCO’s general assembly, completion of due diligence, an independent valuation, execution of definitive transaction documents, and receipt of all required corporate and regulatory approvals.

"This transaction is a strategic turning point that reflects the board's commitment to repositioning the company and delivering sustainable long-term value for shareholders," said H.E. Rashid Ali Rashid Al Omaira, Chairman of BILDCO, underlining the board’s intent to use the partnership as an investment platform for future strategic initiatives.

Context and details of the agreement

• The MoU was signed during a high-level meeting in Abu Dhabi attended by senior representatives of both organisations and was witnessed by H.E. Nasser Mohammed Al Junaibi, Deputy Director General for Operational Affairs at the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA).
• BILDCO was founded in 1974; AG Group was established in 1970. The combination brings more than five decades of experience from each organisation and over a century of combined business heritage.
• Shamsa Al Fahim, Acting Chief Executive Officer and Board Member of BILDCO, described the MoU as "an important milestone in the company's growth strategy," noting AG Group's "long-standing operational excellence and disciplined expansion" and stating the partnership is expected to "unlock mutual value while supporting the UAE's long-term economic development priorities."
• Javed Ghulami, Chairman and Chief Executive Officer of AG Group, welcomed the partnership and described BILDCO as "the ideal strategic partner for the group's next phase of expansion," citing shared commitments to transparency, operational excellence, and sustainable growth.
• The proposed transaction is framed as a pivotal milestone for BILDCO, marking the start of a long-term transformation into a diversified investment holding company via disciplined acquisitions, strategic partnerships, and long-term value-creating investments.

Outlook

Upon completion, the 50% partnership is expected to combine complementary expertise, financial strength and strategic capabilities across multiple sectors, broadening opportunities for both groups. The transaction’s successful progression will depend on the completion of due diligence, independent valuation and the approval processes required by shareholders and regulators. If approved, the deal positions BILDCO to pursue further acquisitions and strategic investments as part of its repositioning strategy, while providing AG Group with a partner aimed at supporting its next phase of expansion.