Dubai-based multinational real estate development company Emaar Properties have received shareholder approvals for the acquisition of Dubai Creek Harbour from Dubai Holding and the sale of its stakes in fashion retailer Namshi to eCommerce company, Noon.
The company said in a statement that “the shareholders approved a motion to acquire assets from Dubai Holding and the issuance of a mandatory convertible bond with an aggregate value of $1.02 billion (AED 3.75 billion) to Dubai Holding.”
This represents the share element of an overall consideration of $2.04 billion (AED 7.5 billion) to be paid equally in cash and shares of Emaar Properties, making Dubai Holding the second largest shareholder of Emaar.
According to the company, “The mandatory convertible bond will be convertible into 659,050,967 new shares in Emaar Properties, and the Company’s share capital shall be increased to 2.4 billion (AED 8.83 billion) on the conversion of such mandatory convertible bond.”
The shareholders also approved the sale of Namshi to Noon for a total cash consideration of $335.2 million (AED 1.231 billion). The sale is representative of Emaar’s strategy to divest assets that are not reflective of its core business, with proceeds to be reinvested into the real estate development business, building on its core elements and offering a sustained value for shareholders, the company said.
A spokesperson for Emaar stated that “the 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.”
The transaction is expected to close in the coming months, subject to meeting various conditions, including, final regulatory approvals and so on.
“Shareholders also approved a Special Resolution regarding the abolition of the minimum contribution of UAE nationals and GCC nationals in the Company, meaning there is no minimum shareholding for UAE nationals and GCC nationals, and no shareholding limit for non-UAE nationals,” as per the statement.