By Staff writer
Capital restructuring plan will see the cancellation of 21.3 percent of the company's shares
Dubai-based Deyaar Development is to proceed with capital restructuring plans.
Shareholders of the property developer had approved plans at the recent annual general meeting to reduce Deyaar’s capital from AED5.78 billion ($1.6bn) to AED4.55bn ($1.2bn).
The move by the Dubai Financial Market-listed company has also been given the green light from the Securities and Commodities Authority (SCA).
Saeed Al Qatami, CEO of Deyaar described the move as “positive”. He said: “The plan for capital restructuring proposed by our Board of Directors will enable Deyaar to write off all accumulated losses stemming largely from more than a decade ago, enabling us to further improve financial ratios and increasing our company’s attractiveness to investors and future financing.
“We anticipate this to also have a positive impact on share price and demand, as well as the possibility of dividends distribution in case of accumulated profits and depending on availability of excess cash.”
The capital restructuring plan will see the cancellation of 21.3 percent of the company’s shares.
Deyaar, which is owned by Dubai Islamic Bank, expects the capital restructuring process to be reflected in the market by the end of May 2020.