The proposed merger will reinforce Emaar Properties’ position as MENA’s largest integrated and diversified real estate company, ensuring both Emaar Properties and Emaar Malls are strategically positioned to capture opportunities in the marketplace and drive shareholder value, according to a disclosure to the Dubai Financial Market (DFM).
Emaar Properties also said that the deal will solidify its position as MENA’s largest integrated and diversified real estate company with AED 117 billion total asset value and market capitalisation of AED29 billion, the statement added.
In addition, Emaar Properties aims to boost its financial and operational performance through the full consolidation of Emaar Malls’ earnings and cash flow generation, and further reduce volatility through an increase in the proportion of earnings from recurring businesses.
The proposed merger will see Emaar Malls' shareholders, excluding Emaar Properties, receiving 0.51 Emaar Properties shares for every single Emaar Malls share, which represents a premium of 7.1% to the closing price of Emaar Malls on 1 March 2021, and a premium of 11.2% to the market-implied exchange ratio.
The merger remains subject to a number of conditions, including the approval of the merger by the companies’ shareholders.
After the merger is completed, the total issued share capital of Emaar Properties will be around 8.18 billion shares with Emaar Malls’ shareholders holding approximately 12.5% of the enlarged share capital of Emaar Properties and Emaar Properties’ shareholders holding approximately 87.5%.