Eshraq Investments Confirms Legal Action Over Goldilocks Share Pledges

Eshraq Investments has confirmed that legal proceedings have been initiated in relation to its acquisition of shares in Goldilocks Investment Company Limited, following concerns over allegedly undisclosed share pledges linked to the transaction.

In a disclosure to the Abu Dhabi Securities Exchange (ADX), the listed company said the matter has been referred to the Abu Dhabi Public Prosecution after market speculation surrounding the investment. The company stressed that the case remains at the preliminary stage of review and has not yet progressed to litigation before the competent courts.

According to the disclosure, the legal action relates to shares acquired in Goldilocks that were reportedly subject to one or more pledges. Eshraq said these pledges were not disclosed during its General Assembly meeting held on April 28, 2022, when shareholders approved aspects of the broader investment.

The company emphasised that the issue is currently under investigation by the Public Prosecution and that no judicial proceedings have been initiated at this stage. It also noted that all available legal avenues have not yet been exhausted, indicating that the process remains ongoing and subject to further developments.

The disclosure was issued at the request of ADX after the company became aware of market rumours and external speculation regarding the transaction. Eshraq added that the update also follows earlier announcements, including board resolutions issued in November 2025 and shareholder resolutions approved in December 2025, which were connected to the same investment framework.

The Goldilocks share acquisition has been one of Eshraq’s more closely watched investments in recent years, with shareholders previously endorsing resolutions linked to its strategic direction. The latest statement marks the first formal confirmation that legal steps have been taken in relation to the alleged non-disclosure of pledges attached to part of the acquired shareholding.

Corporate governance and disclosure standards have been under increasing scrutiny across listed companies in the UAE, with regulators and exchanges reinforcing requirements aimed at ensuring timely and accurate disclosure of material information. The Eshraq update comes against this backdrop of heightened attention to transparency and shareholder protection.

Eshraq reiterated in its filing that the matter remains under review at the Public Prosecution stage and clarified that no court hearings or formal litigation proceedings have commenced. The company did not disclose further details regarding potential financial exposure or the identities of parties linked to the pledges, stating that the matter is still subject to legal review.

Further updates are expected as the case progresses through the relevant legal channels.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.