After the deal with partial shares, Dubai Holding will become the second largest shareholder of Emaar after the Dubai Investment Corporation, which owns 24.07 percent
Emaar Properties has announced an agreement with Dubai Holdings to fully acquire Dubai Creek Harbour, a new complex located along the historic Dubai Creek waterfront, for 7.5 billion dirhams ($2.04 billion), which will be paid equally in cash and Emaar shares.
Thus, Dubai Holding will become the second largest shareholder of Emaar.
The statement did not disclose any additional financial details, including the number of shares offered by Emaar. According to Reuters, Emaar's largest shareholder at the moment is the Dubai Investment Corporation, which owns 24.07 percent or about 1.97 million shares.
Dubai Creek Harbor offers stunning views of the Burj Khalifa and the city center over the bay. It has 7.3 million square meters . m of living space, 711,399 sq. m. m serviced apartments and 700,000 sq. m. m parks and open spaces. It is located just a five-minute drive from Ras Al Khor Wildlife Sanctuary and a 10-minute drive from Dubai International Airport.
An Emaar spokesperson said: “The purchase agreement with Dubai Holding represents another important achievement in Emaar's rich history as we continue to expand our strategic land bank and create sustainable value for our shareholders.
“We are determined to support the government's vision for sustainable urban development of Dubai, while providing a new experience for residents and visitors of the city.”
Market sources suggest that Rothschild & Co is acting as the sole consultant to Dubai Holding on this transaction.
Emaar Properties, with a market capitalization of 43.5 billion dirhams, recorded revenue growth of 12 percent to 6.6 billion dirhams amid the rapid growth of the real estate market in Dubai. Sales in the Group as a whole increased by 17 percent and amounted to 8.3 billion dirhams. The company reported a 34 percent increase in first-quarter profit to 1.05 billion dirhams.
In the first half of 2022, Emaar recorded sales in Dubai Creek Harbour in the amount of 3.6 billion dirhams UAE.
The company's shares closed at 5.70 dirhams on Thursday. The announcement was made after the stock market closed.
0 comments