#Dubai developer Deyaar to proceed with capital restructuring plans | ZAWYA MENA Edition

Dubai developer Deyaar to proceed with capital restructuring plans | ZAWYA MENA Edition:

Dubai-listed developer Deyaar will reduce capital from 5.78 billion dirhams ($1.57 billion) to 4.55 billion dirhams, following shareholder approvals for restructuring.

“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,” Saeed Al Qatami, CEO of Deyaar said.

“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,” Al Qatami said.

The capital restructuring will see the cancellation of 21.3 percent of the developer’s shares. The company expects the process to be reflected in the market by end of May 2020, it said in a statement to Dubai Financial Market.