“Emaar Properties” held a General Meeting, where shareholders approved the acquisition of “Dubai Creek Harbour” from “Dubai Holding” and the sale of “Namshi Holding Limited” to Noon AD Holdings” from “Emaar Malls Management”, a wholly-owned subsidiary of “Emaar Properties”.
Shareholders approved a motion to acquire assets from Dubai Holding and the issuance of a mandatory convertible bond with an aggregate value of 3,750,000,000 dirhams to “Dubai Holding”. This represents the shared element of an overall consideration of 7.5 billion dirhams to be paid equally in cash and shares of Emaar Properties, making Dubai Holding the second largest shareholder of Emaar.
The mandatory convertible bond will be convertible into 659,050,967 new shares in Emaar Properties, and the Company’s share capital shall be increased to 8,838,789,849 dirhams on the conversion of the such mandatory convertible bond.
Shareholders also approved the sale of Namshi to Noon for a total cash consideration of 1.231 billion dirhams ($335.2 million), representing a premium of 127 million dirhams on the total investment by Emaar Malls Management in Namshi.
The sale is representative of Emaar’s strategy to divest assets that are not reflective of its core business, with proceeds to be reinvested into the real estate development business, building on its core elements and offering sustained value for shareholders.
The transaction is expected to close in the coming months, subject to meeting various conditions, including, inter alia, final regulatory approvals.
Shareholders also approved a Special Resolution regarding the abolition of the minimum contribution of UAE nationals and GCC nationals in the Company, meaning there is no minimum shareholding for UAE nationals and GCC nationals, and no shareholding limit for non-UAE nationals.