DXB Entertainments board recommends Meraas offer as 2020 loss widens | The National

DXB Entertainments board recommends Meraas offer as 2020 loss widens | The National

DXB Entertainments (DXBE), the operator of Dubai Parks and Resorts, is recommending shareholders accept a takeover offer from its parent company, Meraas Leisure and Entertainment after its losses for 2020 widened.

The theme park company needs new funding and without further support its current available liquidity is likely to be exhausted in the second quarter of 2021, DXBE said in a statement to the Dubai Financial Market, where its shares trade. Its available cash balance at the end of 2020 stood at Dh400m, the company said.

DXBE's board “unanimously recommended” shareholders accept the offer made by Meraas in December at the company’s general assembly meeting on March 9.

“The board believes that the offer safeguards the interests of DXBE and is the only viable route for DXBE shareholders to recover value from their investment while also seeking to protect the interests of other stakeholders, including employees, suppliers and customers,” the board said in a separate statement to the DFM.

Meraas Leisure and Entertainment and its parent Meraas Holding have a 52.29 per cent stake in DXBE.