UAE Law and Practice Contributed by: Ahmed Ibrahim, Malack El Masry and Maryam Quadri, IN’P IBRAHIM .N. PARTNERS
11.2 Aims of Activists Activists might encourage companies to enter into M&A transactions if they are at a premium in com - parison to the market price. 11.3 Interference With Completion Activist shareholders in the UAE have previously threatened to bring claims against the directors of a company and/or the acquirer, and some have actually filed claims.
transactions subject to external regulatory approvals or with extended completion timelines.
11. Activism 11.1 Shareholder Activism
Shareholder activism depends on the shareholding structure of the company. If a company is dominated by the ownership of one shareholder holding more than 50%, then shareholder activism will have less weight than it will have in companies where the share - holding is scattered, and where decision-making can be affected by such activism. That said, we have seen in the past minority activist shareholders filing com - plaints to the market and CMA against proposed M&A transactions if the minority shareholders deem that such transactions are against the business strategic vision or expansion plan of the company and in fact threatened to bring claims.
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