Qatar Navigation, Qatar Shipping merger on track

They also clarified the following points regarding the proposed merger process.

The proposed merger process is being overseen by a Steering Committee appointed by H.E Abdulla Bin Hamad Al-Attiyah, the Deputy Prime Minister and Minister of Energy and Industry of the State of Qatar. The Committee is chaired by Qatar Petroleum's Director of Finance, Mr. Mohammed Al Sherawi, and has representatives from the senior management of Qatar Navigation and Qatar Shipping, besides Qatar Petroleum representatives.

Both companies have jointly engaged HSBC Bank Middle East Limited as investment bank advisor and lead consultant to evaluate and advice on the potential merger and report to the Steering Committee.

The proposed merger process involves three phases:
• Merger Evaluation, which will determine the synergies and viability of the Merger along with the structure and processes required to complete it;
• Merger Implementation through the legal and financial closure of the transaction;
• Post-Merger Integration of the two companies.

The evaluation by the consultants will be limited to the merger and not the current business strategy of the two companies. Each phase could take several months to complete and will be subject to legal and regulatory approvals.

Whilst evaluation of the proposed merger and structuring alternatives is being conducted, both companies will continue as normal to run their businesses in the ordinary course.

The following consultants are involved in the evaluation:
• HSBC Bank Middle East Limited - Lead Consultant
• Latham & Watkins - International Legal Counsel
• Mohammed Al Marri in Association with Al Tamimi and Co - Qatari Legal Counsel
• Ernst & Young - Reporting Accountant
• A.T.Kearney - Management Consultant
• Citigate Dewe Rogerson - Communications Consultant
• DTZ Qatar L.L.C- Real Estate Valuers

The merger process is subject to review and may change at the discretion of the Steering Committee. Qatar Navigation, Qatar Shipping and the Steering Committee will provide further updates to the market on the proposed merger process as and when necessary.