Dubai – Mubasher: Meraas Leisure and Entertainment has notified the board of DXB Entertainments about its plan to make a conditional cash offer to acquire all issued and paid up ordinary shares of DXBE.

As part of the offer, the holders of shares in DXBE, excluding Meraas and its affiliate Meraas Holding, will receive AED 0.08 in cash for each share, according to a recent press release.

Meraas and its affiliate are planning to convert the balance of the existing convertible bond instrument issued to both companies by DXBE in 2018 into new shares in DXBE, including a conversion of AED 1.479 billion at a price of AED 1.04 per share.

Meanwhile, Meraas intends to acquire the senior bank debt of DXBE with an outstanding balance of around AED 4.255 billion and convert the bank debt into new shares of DXBE at a price of AED 0.08 per share.

Hence, DXBE will raise its issued ordinary shares to 62.822 billion from 8 billion.

As at 16 December 2020, Meraas and Meraas Holding have an aggregate ownership of 52.29% of DXBE’s share capital. 

Following the convertible conversion and the bank debt conversion, the ownership of both companies will increase to 93.92% of DXBE’s total issued ordinary shares.