Dubai – Mubasher: The shareholders of Emaar Properties have greenlighted the acquisition of Dubai Creek Harbour from Dubai Holding during their general meeting on 21 September.
The stakeholders also approved the sale of Namshi Holding Limited to Noon AD Holdings from Emaar Malls Management, a wholly-owned subsidiary of Emaar Properties, according to a press release on Wednesday.
As for the takeover transaction, the shareholders nodded to a motion to acquire assets from Dubai Holding in addition to the issuance of a mandatory convertible bond worth an aggregate value of AED 3.75 billion to Dubai Holding. This amount represents the share element of an overall consideration of AED 7.50 billion which will be paid equally in cash and shares of Emaar Properties.
Following the acquisition transaction, Dubai Holding will become the second largest shareholder of the listed company.
The bond will be convertible into 659.05 million new shares in Emaar Properties, which will lead to an increase in the listed firm’s share capital to AED 8.83 billion on the conversion of such a mandatory convertible bond.
Meanwhile, the sale of Namshi to Noon will be executed for a total cash consideration of AED 1.23 billion ($335.20 million), which accounts for a premium of AED 127 million on the total investment by Emaar Malls Management in Namshi.
Through the sale deal which is projected to close in the coming months, Emaar Properties aims to further divest assets which are not reflective of its core business, with the proceeds to be reinvested into the real estate development business.
The DFM-listed firm earlier expected net profits worth AED 628.68 million from the potential sale of Namshi Holding.
Emaar Properties’ equityholders also passed a special resolution related to the abolition of the minimum contribution of both UAE and GCC nationals in the company. This translates to no minimum shareholding for UAE and GCC nationals, and no shareholding limit for non-UAE nationals.
In the first half (H1) of 2022, the real estate developer generated AED 4.30 billion in net profit attributable to the owners.