Emaar investors approve Dubai Creek Harbour acquisition


The deal’s structure makes Dubai Holding the second largest shareholder of Emaar stock

Shareholders have approved Emaar Properties’ acquisition of Dubai Creek Harbour from Dubai Holding, the master developer has announced. Shareholders have also approved the sale of Namshi Holding to Noon AD Holdings from its key retail subsidiary Emaar Malls Management. The announcement is the result of a General Meeting on 21 September.

According to Emaar, shareholders approved a motion to acquire assets from Dubai Holding and the issuance of a mandatory convertible bond with an aggregate value of US $1.02bn to Dubai Holding. The acquisition deal was originally announced in mid-August.

In April 2022, Emaar Development said it would handover 8,500 residential units by the end of the year.

This represents the share element of an overall consideration of $2.04bn to be paid equally in cash and shares of Emaar Properties, thus making Dubai Holding the second largest shareholder of Emaar, the statement noted.

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 $2.4bn on the conversion of a such mandatory convertible bond.

The sale of Namshi to Noon is said to comprise a total cash consideration of $335.2mn, representing a premium of $34.6mn on the total investment by Emaar Malls Management in Namshi.

The sale is said to represent 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. Emaar originally announced it was considering the sale of Namshi in mid-August.

The transaction is expected to close in the coming months, subject to meeting various conditions, including, inter alia, final regulatory approvals, the statement concluded.



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