Dubai-based multinational real estate development company Emaar Properties has stated that it has jointly decided to go for a merger with its shopping center unit, Emaar malls, through an all-share deal.
“As part of the transaction, the existing business of Emaar Malls will be reconstituted in a wholly-owned subsidiary of Emaar Properties,” the company said.
According to the statements, each of their boards of directors have voted to recommend an all-share merger to their respective shareholders.
As part of the deal, the malls unit will continue to grow a portfolio of retail assets, while Emaar Properties will remain listed on the Dubai Financial Exchange.
The move is expected to aid Emaar “capture opportunities in the marketplace and drive shareholder value”, the company stated.
As per the reports, the proposed transaction would be a statutory merger by way of a share swap, with Emaar Malls shareholders (excluding Emaar Properties) receiving 0.51 Emaar Properties shares for every one Emaar Malls share held.
The developer further added, “The proposed merger has the unanimous support and recommendation of the board of directors of Emaar Properties and Emaar Malls (acting through its independent directors) and will reinforce Emaar Properties’ position as Mena’s largest integrated and diversified real estate company, ensuring both Emaar Properties and Emaar Malls are strategically positioned to capture opportunities in the marketplace and drive shareholder value.”
The merger of Emaar Properties and Emaar Malls is expected to reinforce the combined group’s role as a national real estate champion and will continue to contribute to Dubai’s ongoing development, serving as a vital enabler of the UAE’s economic vision.
The merger is subject to several terms and conditions, including the approval by the shareholders of Emaar Properties and Emaar Malls.