Dubai – Mubasher: Emirates REIT has rescinded the voluntary consent solicitation memorandum (CSM), which aims to exchange existing unsecured Sukuk certificates with new secured Sukuk certificates on a dollar-for-dollar basis.
Although 57% of Sukuk holders had voted in favour of the CSM, the support remained below the special majority threshold of 75% needed for the exchange offer to proceed, according to a press release on Monday.
Hence, the company has decided to cancel the voluntary offer and will continue to work on enhancing the capital structure and achieving greater alignment of intrinsic and market value of its traded securities.
The value of Emirates REIT’s Sukuk, due in December 2022, rallied 8 basis points, or 12% as of 6 June 2021, since the revised Sukuk terms were initially proposed.
The Managing Director at investment bank Houlihan Lokey, an advisor to Emirates REIT, Arun Reddy, said: "The fact that the Sukuk rallied 12% over the offer period and that a clear majority of Sukuk holders voted in favour, is a sign of the appealing nature of the transaction."