Amlak, Tamweel restructuring plan seen soon - paper

UAE economy minister says merger plans are waiting for final approvals.
Amlak, Tamweel restructuring plan seen soon - paper
STOCK WATCH: Amlak and Tamweel shares were suspended in 2008 and have not traded since.(Getty Images)
By Neeraj Gangal
Thu 18 Mar 2010 01:28 PM

A restructuring of Dubai mortgage firms Amlak and Tamweel is in the final stages and will be revealed soon, UAE's economy minister was quoted as saying by a daily paper on Thursday.

The UAE government said in November 2008 it intended to merge the two entities, hit hard by the collapse of Dubai's property sector, and has been working on a restructuring plan.

"There will be an announcement soon about the final solution for the restructuring of the two companies," Sultan bin Saeed al-Mansouri told Al Ittihad.

Mansouri, who heads a state panel reviewing the merger plans, said it was waiting for final approvals.

In October, the minister said the panel was recommending merging the two lenders into a single Islamic bank.

The merger of the two firms in the first quarter is still "feasible", Tamweel chairman Sheikh Khaled bin Zayed al-Nahyan told Reuters in January.

Amlak and Tamweel shares were suspended in 2008 and have not traded since.

Amlak recorded its fifth consecutive quarterly loss for the final three month of 2009, while Tamweel swung to a net profit of 11 million dirhams ($3 million) in the period.  (Reuters)

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