Emaar Malls Management, a wholly-owned subsidiary of UAE-based Emaar Properties, has entered into a definitive share purchase agreement with eCommerce company Noon to sell the entire share capital of Namshi for a total cash consideration of $335.2 million (AED1.23 billion).
The company said in a statement that “the consideration represents an excess of $34 million (AED127 million) on the total investment by Emaar Malls in Namshi including purchase consideration and subsequent investment.”
The transaction is in line with Emaar’s strategy to divest assets that are not core to its primary business to create and sustain value for its shareholders.
According to the company, “Proceeds from the transaction will be invested by Emaar into its core real estate development business in line with Emaar’s strategy to redeploy capital across the group with a focus on investing in businesses that are of core strategic value.”
Last week, Emaar Properties announced that it will sell its online fashion platform Namshi to Saudi Arabia-based leading eCommerce firm Noon.
“The capital generated through the divestment of Namshi, a non-core asset for Emaar, would be deployed in core focus areas of Emaar to generate shareholder value. Further, the sale of Namshi at a premium to its purchase price generates additional value for Emaar shareholders,” said a spokesperson for Emaar, the parent company of Emaar Malls Management.
Emirates NBD Capital Limited and Linklaters LLP advised Emaar Malls on the Transaction as financial and legal advisors, respectively. Credit Suisse and Clyde & Co LLP advised noon on the transaction as financial and legal advisors, respectively, as per the statement.
The transaction is expected to close in the next 6 months, subject to meeting various conditions, including final regulatory approvals, and approval from Emaar’s shareholders.
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