Emaar merger given green light from authorities

The merger, which was announced at the start of March this year, was previously backed by the board of directors of both companies.

A statement on Monday said that, on completion, Emaar Properties would assume all the assets and liabilities of Emaar Malls, which would become a wholly-owned subsidiary of Emaar Properties.

It added that the move will “reinforce Emaar Properties’ position as MENA’s largest integrated and diversified real estate company, ensuring both Emaar Properties and Emaar Malls are strategically positioned to capture opportunities in the marketplace and drive shareholder value”.

EMAAR – Shareholder Circular in respect of the merger of Emaar Properties and Emaar Malls https://t.co/h7vLgMHtfU

— DubaiFinancialMarket (@DFMalerts) September 6, 2021

The developer will pay 0.51 share for every Emaar Malls share, representing a premium of 7.1 percent to the closing price of Emaar Malls on March 1, the last trading day before the merger announcement.

The merger is subject to a number of conditions, including the approval of shareholders who own at least 75 percent of the shares represented at quorate general meetings of Emaar Properties and Emaar Malls.

Shareholders will be invited to attend a general meeting of the companies, which will be held both physically and remotely/electronically, on October 10.

Emaar Properties sold shares in Emaar Malls, which operates one of the world’s biggest shopping centres in Dubai, in 2014. The order book was more than 30 times oversubscribed for the institutional segment, and more than 20 times for the individual part at the top of the price range at AED2.9.

Emaar Properties recorded a robust performance in the first half of 2021, led by record property sales of AED16.8 billion ($4.6bn). While Emaar Malls reported an increase in net profit by 80 percent to AED622 million ($169m) during the first six months of 2021 compared to the same period in 2020.