Dubai-based multinational real estate development company Emaar Properties will sell its online fashion platform Namshi to Saudi Arabia-based leading eCommerce firm Noon.
The company stated that the price shall be a cash consideration of $335.2 million, noting that the price is within the range which has been defined by an independent valuer approved by the Securities & Commodities Authority.
“The planned divestment is with a related party to the company, noting the concerned board member did not participate or vote in the meeting,” said Emaar in a statement to the Dubai Financial Market, where its shares are traded.
The above cash consideration is the equity value of Namshi which is equivalent to $350 million of the Enterprise Value of the company.
According to the company statement, “This is adjusted for the debt at the company level and the normalized working capital required for the company.” Emaar will receive the equity value as the cash consideration for the sale.
“Detailed information will be disclosed once the approvals of Noon Board is received formally,” the company further added.
Emaar Properties first bought a 51 percent stake in Namshi for $151 million in 2017 from Rocket Internet’s Global Fashion Group. It later acquired the remaining 49 percent stake in the online fashion retailer for $129.5 million.
Earlier this month, Emaar Properties announced that it will fully acquire Dubai Creek Harbor, the major development located along the historic Dubai Creek waterfront, from Dubai Holding at a consideration of $2 billion.
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