Hussain Sajwani, chairman of Damac Properties, has made an offer to take the Dubai-based company private, the firm mentioned on Wednesday.
Maple Invest Co, which owns 88.106% of Damac will raise the stake to just over 90% initially and then increase it to 100% at Dh1.3 per share, it provided in a statement.
Reuters recorded the previous year that Sajwani, the owner of the only Trump-branded golf club in the Middle East, was weighing buying out minority shareholders and taking the company private, citing sources.
The deal costs Damac at $2.1 billion, at par with its market value on Tuesday.
Damac’s Sajwani resigned as chairman and from the board to avoid a dispute of interest.
Emaar Malls’ delisting plans prepared for Damac and the stock market will be left with less depth as a result, as per Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital Ltd.
The trend may have repercussions for a market that is attempting to support revenue and risks denying investors of openness to one of the emirate’s crucial sectors.
Damac has announced losses in 2020 and 2019 as the property market battled with an oversupply that hammered costs for as long as seven years. The construction industry will convey an expected 62,000 homes in Dubai this year and almost 63,500 in 2022, which would be the most since 2009, as per consultancy firm Knight Frank LLP.
Sajwani may need to offer a premium of 5% to 10% “if he wants to leave his investors with a good taste,” according to Yasin.
“The premium that used to be there for public companies in the real estate industry is no longer there,” he said. “Real estate firms are lagging and management are under pressure at a time recovery has some time to go.”