Emaar Properties has announced plans to take full control of its Dubai-listed property unit in a deal that could cost the company around Dh11.9 billion. The developer said it intends to make a voluntary cash offer to acquire all the shares in Emaar Development that it does not already own.
Emaar Properties is offering Dh15 per share to investors. That works out to about $4.08 for every share. The parent company already owns just over 79 percent of Emaar Development. The acquisition of the remaining shares could cost $3.2 billion, which is equivalent to about Dh11.9 billion.
Emaar Development had a market capitalisation of nearly Dh56 billion as of November 3. The property unit has been a separate entity listed on the Dubai Financial Market. The voluntary cash offer would see Emaar Properties consolidate complete ownership of the development business under one roof.
The development arm has a substantial order book for future projects. Emaar Development reported a revenue backlog of Dh128 billion as of June 30 this year. That figure represents the value of properties sold but not yet completed or handed over to buyers. The backlog gives an indication of how much work the company has lined up in the coming years.
Emaar Development focuses on residential and commercial property development across Dubai. The unit handles many of the group's new project launches and off-plan sales. Bringing it entirely under Emaar Properties could streamline operations and give the parent company more direct control over its development pipeline. The offer to minority shareholders represents an opportunity for investors to exit at the Dh15 price point. Emaar Properties has not yet set a deadline for the voluntary offer to close.
Source
Emaar plans full takeover of Dubai-listed property unit (The National News)