Emaar Properties is studying a buyout of the minority shareholders in its listed unit Emaar Development, of which it owns just over 79 percent, Bloomberg reported. Emaar Development shares jumped as much as 11.5 percent on the news.
Emaar Properties is considering buying out the minority shareholders of its listed home building unit Emaar Development, Bloomberg first reported on Tuesday, citing people familiar with the matter. Emaar Properties owns just over 79 percent of the company. According to Gulf News, Emaar Development is valued at more than $15 billion, so acquiring the remaining shares could cost up to $3.2 billion at current prices, and a deal could lead to a delisting.
Talks are ongoing and a transaction could be announced within days, but the structure and pricing have not been decided and Emaar could still walk away. Emaar Properties declined to comment. More than a month ago the company said it was evaluating proposals to create shareholder value and took legal and financial advice; the board is due to review the proposals at a meeting this week.
Emaar Development shares rose as much as 11.5 percent after the report, their biggest intraday gain since early April, though they remain nearly a third below their level before the regional war began. Full ownership would give Emaar Properties more control over the cash generated by its residential business, which could fund international expansion, recurring income assets and dividends. CI Capital analysts see strategic benefits but say financing costs and timing will matter.
Emaar Development listed in Dubai in 2017, raising about $1.3 billion. In 2021 Emaar took Emaar Malls private through an all share deal, and in May a company controlled by Dubai's ruler bought a $6.5 billion stake in Emaar Properties from the emirate's main investment vehicle.
Source: Gulf News
