Emaar expecting a net profit of AED 629 mln from Namshi sale

Exceeding the 127 million dirhams invested
Emaar expecting a net profit of AED 629 mln from Namshi sale
Emaar Properties

UAE’s Emaar Properties said it is expecting a profit of 628.68 million dirhams (approximately $171 million) from the upcoming sale of the Namshi platform, which is expected to be completed within six months.

In a bourse filing issued today, Emaar stated that the actual profit rate of the deal, if executed, ranges between 5 and 7 percent based on Namshi’s net asset value on the date of closing the deal.

The disclosure highlighted that “based on the total amount invested by Emaar in Namshi, the value of the cash consideration that will be obtained is expected to exceed the 127 million dirhams ($35 million) invested in the deal.”

Last Friday, Emaar announced that its board of directors had approved the sale of Namshi to Noon subject to the latter’s approval. The deal is expected to be signed on Aug. 24. 

The transaction is valued at $335.2 million, or 1.23 billion dirhams, and falls within the range established by an independent valuer approved by the UAE’s Securities and Commodities Authority. This cash consideration represents the value of Namshi shares after deducting the enterprise’s debts and required regular operating capital, which totals $350 million.

The proceeds of the transaction will be invested in Emaar’s core business of real estate development. The transaction is in line with the company’s strategy of redistributing capital across the group with a focus on investing in businesses of core strategic value for the benefit of shareholders in the future.