By Staff writer
Dubai developer refutes reports, says it has 'no plans' to increase equity in Emaar MGF
Dubai-based Emaar Properties has denied media reports claiming it is planning to infuse fresh equity capital in India's Emaar MGF Land to raise its controlling stake in the company to more than 74 percent.
The developer said in a brief statement issued to the Dubai Financial Market that it has "no plans to increase its equity in Emaar MGF" following reports in the Indian press.
Emaar holds a 50 percent stake in Emaar MGF Land, which the Dubai government-owned company had set up as a joint venture with Sharvan Gupta-promoted MGF Development.
In April, Emaar announced plans to demerge operations of its Indian joint venture Emaar MGF Land Ltd and the company said it is "now working toward completing this process".
The joint venture, which was set up in February 2005 with an investment of $1.5 billion by Emaar, is being reorganised in a bid to "lend greater focus on Indian operations and for the purpose of developing the potential for further growth and expansion of the business".
The two entities have agreed on the separation terms through a scheme of demerger of the JV and are awaiting regulatory approval.