Emaar shareholders approve acquisition of Dubai Creek Harbour, sale of Namshi

Emaar Properties’ shareholders approved the acquisition of Dubai Creek Harbour from Dubai Holding and the sale of Namshi Holding to Noon AD Holdings, at the company’s annual meeting held on September 1.

In August, Emaar Properties announced it would fully acquire Dubai Creek Harbour from Dubai Holding for a consideration of Dhs7.5bn.

Read: Emaar signs deal with Dubai Holding to acquire Dubai Creek Harbour

According to a statement released by the company, “shareholders approved a motion to acquire assets from Dubai Holding and the issuance of a mandatory convertible bond with an aggregate value of Dhs3,750,000,000 to Dubai Holding”.

This represents the ‘share’ element of the overall consideration of Dhs7.5bn, which was to be paid equally in cash and shares of Emaar Properties, making Dubai Holding the second largest shareholder of Emaar.

The mandatory convertible bond will be convertible into 659,050,967 new shares in Emaar Properties, and the company’s share capital shall be increased to Dhs 8,838,789,849 on the conversion of such a mandatory convertible bond.

Sale of Namshi
Shareholders also approved the sale of Namshi to Noon for a total cash consideration of Dhs1.231bn, representing a premium of Dhs127m, the total investment by Emaar Malls Management, a subsidiary of Emaar Properties, in Namshi.

Read: Dubai’s Emaar to sell online platform Namshi to Noon

The transaction is expected to close in the coming months, subject to meeting various conditions, including, inter alia, final regulatory approvals.

Special resolution passed
A special resolution was also approved, removing the minimum contribution of UAE nationals and GCC nationals in the company, meaning there is no minimum shareholding for UAE nationals and GCC nationals, and no shareholding limit for non-UAE nationals.

Read: Emaar Properties’ board recommends scrapping foreign ownership limit on shares

A spokesperson for Emaar said the general assembly meeting “represents the final step in the completion of two high-profile transactions for Emaar, which both reflect the company’s ongoing strategy to maximise the core business while continuing to offer outstanding value for our shareholders”.