Emaar Properties’ board of directors agreed to ‘in principle’ sell its fashion and accessories portal Namshi, to Noon, the Gulf e-commerce platform in which the Saudi wealth fund has a sizeable stake, for $335.2 million in cash, subject to Noon’s board of directors’ approval.
The sale transaction is for the benefit of a related party to the company, according to a statement from Emaar to the Dubai Stock Exchange, noting that the member of the board of directors concerned did not participate or vote in the meeting.
According to Emaar’s website, Emirati businessman Mohammed Alabbar, founder of Emaar Properties, is also the founder and owner of Noon e-commerce company.
According to Emaar Properties’ statement, the transaction’s sale price “falls within the range determined by an independent valuer approved by the Securities and Commodities Authority.”
“The cash consideration for the transaction is the value of Namshi‘s shares after deducting its debts and required regular operating capital from the facility’s value, which is $350 million. As a result, Emaar will receive the total value of the selling price in cash,” the statement added.
In 2019, Emaar completed its acquisition of Namshi by purchasing 49 percent of the e-commerce company’s shares from Global Fashion Group for $129.5 million, after previously purchasing 51 percent of Namshi from the same company for $151 million in 2017.
