Dubai's Emaar Properties to Take Over Malls Unit in Deal Valuing it at $6.5 Bln - Bloomberg
Emaar Properties PJSC, the Dubai-based developer of the world’s tallest tower, plans to take over its malls unit, in a transaction that will value the business at 24 billion dirhams ($6.5 billion).
Emaar Properties, which already owns 85% of Emaar Malls, proposed to pay 0.51 shares for every one share in Emaar Malls, the companies said a statement. According to Bloomberg calculations, the offer values Emaar Malls’ at 1.85 dirhams per share and a 10% premium to its last closing price.
A property glut and faltering demand in Dubai have driven prices down by more than a third since the market peaked some seven years ago. The decline has been made worse by the coronavirus pandemic, and Emaar last year temporarily halted new projects.
The company sold its share in Emaar Malls, which operates one of the world’s biggest shopping centers in the Middle East business hub, 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 2.9 dirhams.
Restrictions to check the spread of the coronavirus pandemic weighed on the business for most of last year, though visitor numbers started to pick up when curbs were eased. Still, Emaar Malls posted a wider-than-expected loss for the year.
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