By Andy Sambidge
Move by mortgage lender will pave the way for its acquisition by Dubai Islamic Bank
Mortgage lender Tamweel said on Monday its shareholders had approved the company's delisting from the Dubai stock exchange, paving the way for its acquisition by Dubai Islamic Bank.
Abdulla Al Hamli, CEO of DIB said: "We thank the shareholders of DIB and Tamweel for their extraordinary support in helping us expedite the acquisition process. The acquisition of Tamweel will enable DIB to take advantage of the opportunities offered by the recovery and growth of the UAE real estate sector."
Dr Adnan Chilwan, deputy CEO at DIB, added: The UAE real estate market is poised for strong growth over the coming years, with the first quarter of 2013 seeing nearly 50 percent growth in value of transactions in Dubai when compared to same period last year.
"With rents rising four percent quarter on quarter, more and more end users are leaning towards owning properties rather than continuing to rent. Hence, this acquisition leaves our business well placed to capitalize on the opportunities the home finance sector presents."
He said the bank was seeing a number of companies gradually expanding their business operations, leading to job creation and headcount increase, on the back of positive domestic market conditions.
As few as 15 percent of Dubai's home purchases are estimated to involve mortgages. The UAE central bank is in the process of drawing up wide-ranging rules for the mortgage market to limit risk and speculation.
Dubai Islamic Bank said in January it planned to acquire all of Tamweel, in which it owned 58.2 percent, through a share swap agreement which would see each Tamweel shareholder offered 10 DIB shares for every 18 Tamweel shares they held.
Poor shareholders lol.. That means they got offered roughly half of their share value. This is actually quite sad.i feel sorry for them shareholders (bag holders).