Emaar gets investor nod for malls' merger, share capital boost
DUBAI, October 11, 2021
Leading Dubai developer Emaar Properties has announced that it has won shareholders' approval for the company's merger with its retail and shopping mall unit - Emaar Malls.
The merger, which was announced earlier this year, has already won the approval from the Emirati regulator Securities & Commodities Authority (SCA).
Emaar Properties currently owns 84.6% of Emaar Malls. Following the merger, Emaar Malls would no longer be listed.
The company also won their backing for a proposal to boost its share capital to AED8.17 billion ($2.2 billion) during the General Assembly held yesterday (October 10), stated Emaar in its filing to the Dubai Financial Market.
Under the new arrangement, Emaar Malls' shareholders, excluding Emaar Properties, would receive 0.51 share of the Dubai developer for every Emaar Malls stake.
This represents a premium of 3.5% to the closing price of Emaar Malls on September 1 and a premium of 4.4% to the market implied exchange ratio based on volume weighted average prices over the last one month to September 1, it added.
As per the proposal, Emaar said the existing business of Emaar Malls will be reconstituted within its wholly-owned subsidiary and will continue to develop and hold a portfolio of premium shopping malls and retail assets,
The merger will further reinforce Emaar Properties’ position as Mena’s largest integrated and diversified real estate company, thus ensuring both the entities are strategically positioned to capture opportunities in the marketplace and drive shareholder value, it added.-TradeArabia News Service
