Emaar Properties is seeking to take full ownership of its Dubai-listed development subsidiary through a proposed cash offer to minority shareholders. The move would consolidate the developer's control over one of the largest residential developers in the UAE.
Emaar currently owns more than 79 percent of Emaar Development. The proposed offer price stands at AED15 per share for the remaining stake held by minority investors. The acquisition would bring the entire development arm under the full control of the parent company.
Emaar Development has a revenue backlog of AED128 billion as of June 30. That figure represents the value of contracts and sales already secured but not yet delivered. The substantial backlog underscores the scale of the development unit's ongoing projects across Dubai and beyond.
The takeover bid reflects a broader strategy to streamline operations and strengthen control over key business divisions. By absorbing the minority shareholders, Emaar Properties would have complete authority over development decisions and financial planning for the unit. This consolidation could allow for faster decision-making on new project launches and sales strategies.
Emaar Development has been responsible for delivering numerous residential communities and towers across Dubai. The subsidiary handles the bulk of the group's homebuilding operations while the parent company manages other business lines including malls and hospitality. Bringing the development arm fully in-house would align all property sales and construction activities under unified ownership.
The cash offer to minority shareholders represents a straightforward buyout structure. Investors holding shares in Emaar Development would receive AED15 for each share they own if the proposal moves forward. The price and terms of the offer would need to satisfy regulatory requirements and gain necessary approvals before the transaction can complete.
Source
Emaar Properties Seeks Full Takeover of Dubai-Listed Development Unit (AGBI)