Boards of both companies have previously voted to recommend all share merger aimed at boosting financial and operational performance The proposed merger of Emaar Properties and Emaar Malls should be concluded by the end of 2021, according to a statement made to Dubai Financial Market (DFM). The share merger was originally announced in March this
Boards of both companies have previously voted to recommend all share merger aimed at boosting financial and operational performance
The proposed merger of Emaar Properties and Emaar Malls should be concluded by the end of 2021, according to a statement made to Dubai Financial Market (DFM).
The share merger was originally announced in March this year and was said at the time to have the unanimous support from the board of both companies.
The filing to DFM said: “The company confirms that it is going through the normal regulatory approval processes with SCA (Securities and Commodities Authority) and at the moment expects the proposed merger to complete by year end.”
Merger plan boosts share price of Emaar Properties, Emaar Malls
Both companies top list of most active shares by value for the day on Dubai Financial Market following announcement about planned merger
As part of the transaction, the existing business of Emaar Malls will be reconstituted in a wholly owned subsidiary of Emaar Properties and will continue to develop and hold a portfolio of premium shopping malls and retail assets including The Dubai Mall, while Emaar Properties will continue to be listed on the Dubai Financial Market.
According to a previous statement, the merger will boost Emaar Properties’ financial and operational performance through full consolidation of Emaar Malls’ earnings and cash flow generation, and further reduce volatility through an increase in the proportion of earnings from recurring businesses.
It also aims to significantly improve Emaar Malls shareholders’ earnings profile via a substantial uplift in earnings per share immediately post transaction and access to Emaar Properties’ embedded long term growth potential.
Further more, the move is expected to safeguard Emaar Malls’ credit strength with a neutral impact expected to its existing credit ratings by virtue of the transaction while enhancing Emaar Properties’ standing in regional capital markets and increasing its stock liquidity on the Dubai Financial Market.
The proposed transaction would reportedly see Emaar Malls shareholders receiving 0.51 Emaar Properties shares for every one Emaar Malls share.
Last month, Damac CEO Hussein Sajwani offered to take the rest of Damac private at a discount of nearly 45 percent to the developer’s local listing in 2015.
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