A. SREENIVASA REDDY (ABU DHABI)
Emaar Properties has announced plans to buy out the remaining shares in its subsidiary Emaar Development through a voluntary cash offer of Dh15 per share.
In a stock market disclosure, Emaar Properties said it intends to acquire all shares not already owned by it and its indirect wholly owned subsidiary, Emirates Property Holdings Limited (EPHL).
Emaar Development shares rallied ahead of the announcement and extended their gains after the offer was formally announced. The stock rose 10.7% on Tuesday and 4.9% on Wednesday.
The Dh15 offer price is above Wednesday’s closing price of Dh14.58. The offer is subject to the required approval from the Board of Directors of Emaar Properties, the disclosure said.
The disclosure does not explicitly state whether Emaar Properties intends to delist Emaar Development from the Dubai Financial Market. However, delisting appears to be the inevitable outcome if the parent company succeeds in acquiring 100% of its shares.
Data available on the DFM website shows that Emaar Properties owns a 79.16% stake in Emaar Development.
The offer price values Emaar Development at Dh60 billion ($16.34 billion), according to LSEG data quoted by Reuters.