Investors in Emaar Properties PJSC authorized the purchase of Dubai Creek Harbour from Dubai Holding LLC and the sale of Namshi Holding Limited to Noon AD Holdings Ltd from Emaar Malls Management LLC, a fully owned subsidiary of Emaar Properties, at a general meeting yesterday.
The issuance of a mandatory convertible bond to Dubai Holding with a total face value of $1.02 billion and a motion to acquire assets from Dubai Holding were both authorized by shareholders. This makes Dubai Holding the second-largest stakeholder in Emaar after the total consideration of $2.04 billion, which will be split equally between cash and shares of Emaar Properties.
At a general meeting of investors, Emaar Properties PJSC, a fully owned subsidiary of Emaar Properties, approved the acquisition of Dubai Creek Harbour from Dubai Holding LLC and the sale of Namshi Holding Limited to Noon AD Holdings Ltd.
Shareholders approved a proposal to buy assets from Dubai Holding as well as the issuance of a mandatory convertible bond to Dubai Holding with a total face amount of $1.02 billion. After the total consideration of $2.04 billion, which will be distributed equally between cash and shares of Emaar Properties, Dubai Holding will now have the second-largest holding in Emaar.
Emaar Properties’ strategic development
The sale is an example of Emaar’s strategy to sell assets that are not typical of its main business and reinvest the proceeds into the real estate development industry in order to strengthen its foundation and provide long-term value for shareholders.
Subject to a number of requirements being met, including, among other things, receiving final regulatory clearances, the transaction is anticipated to close in the upcoming months.
The minimum shareholding requirement for UAE and GCC nationals in the Company was eliminated, and there is no minimum shareholding requirement for non-UAE nationals. This was another Special Resolution that the shareholders adopted.
A spokesperson for Emaar said: “Today’s general assembly meeting represents the final step in the completion of two high-profile transactions for Emaar, which both reflect the company’s ongoing strategy to maximize the core business while continuing to offer outstanding value for our shareholders.”