Monday 6 September 2021

#Dubai's Emaar Properties, Emaar Malls merger gets regulatory approval | ZAWYA MENA Edition

Dubai's Emaar Properties, Emaar Malls merger gets regulatory approval | ZAWYA MENA Edition

Emaar Properties and Emaar Malls on Monday said the capital market regulator, Securities & Commodities Authority, has given the go-ahead for the proposed merger of the two companies.

As per the proposal, the existing business of Emaar Malls will be reconstituted in a wholly owned subsidiary of Emaar Properties and will continue to develop and hold a portfolio of premium shopping malls and retail assets.

Under the share swap deal, Emaar Malls shareholders, excluding Emaar Properties, would receive 0.51 Emaar Properties share for every Emaar Malls share.

This represents a premium of 7.1 percent to the closing price of Emaar Malls on 1 March 2021, the last trading day prior to the merger announcement, and a premium of 11.2 percent to the market implied exchange ratio based on volume weighted average prices over the last one month to 1 March 2021, the statement said.

This also represents a premium of 3.5 percent to the closing price of Emaar Malls on 1 September 2021 and a premium of 4.4 percent to the market implied exchange ratio based on volume weighted average prices over the last one month to 1 September 2021, it added.

Emaar Properties currently owns 84.6 per cent of Emaar Malls. Following the merger, Emaar Malls would no longer be listed.

The proposed merger still requires shareholder approval.

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