Leading Dubai master-developer Emaar Properties has announced that it was won approval from the shareholders for the acquisition of Dubai Creek Harbour from Dubai Holding and also for the sale of Namshi Holding to Noon AD Holdings from its key retail subsidiary Emaar Malls Management.
The announcement from Emaar Properties comes after today's (September 21) General Meeting where shareholders gave the go-ahead to both the acquisition of Dubai Creek Harbour as well as the sale of Namshi.
They also approved a motion to acquire assets from Dubai Holding and the issuance of a mandatory convertible bond with an aggregate value of AED3.75 billion ($1.02 billion) to Dubai Holding, said the statement from Emaar.
This represents the share element of an overall consideration of AED7.5 billion ($2.04 billion) to be paid equally in cash and shares of Emaar Properties, thus making Dubai Holding the second largest shareholder of Emaar, it added.
As per the motion, the mandatory convertible bond will be convertible into 659,050,967 new shares in Emaar and the company's share capital will be increased to AED8.84 billion ($2.4 billion) on the conversion of a such mandatory convertible bond.
Shareholders also approved the sale of Namshi to Noon for a total cash consideration of AED1.231 billion ($335.2 million), representing a premium of AED127 million on the total investment by Emaar Malls Management in Namshi.
The sale is representative of Emaar's strategy to divest assets which are not reflective of its core business, with proceeds to be reinvested into the real estate development business, building on its core elements and offering a sustained value for shareholders.
The transaction is expected to close in the coming months, subject to meeting various conditions, including, inter alia, final regulatory approvals.-TradeArabia News Service