Dubai property developer Damac Properties said its board has unanimously recommended that its minority shareholders accept founder Hussain Sajwani’s offer to buy them out and take the company private.
“The board, all of whom do not have a conflict of interest with Maple, having evaluated the inputs received from its independent financial and legal advisers as to the terms of the offer and other factors, consider the terms of the offer to be appropriate and reasonable. Therefore, the board have unanimously recommended to Damac’s shareholders to accept the offer,” the company said in a statement on Thursday to the Dubai Financial Market, where its shares are traded.
If accepted, minority shareholders will receive Dh1.4 ($0.38) in exchange for each Damac share they hold, according to the offer.
Mr Sajwani, who owns 72 per cent of the Dubai company, said on June 9 that he would buy the remaining shares of Damac for a price of Dh1.3 each, amounting to $595 million.
He resigned from the board as chairman to avoid a conflict of interest. Damac appointed vice chairman Farooq Arjomand as his replacement on June 15, while Ali Binjab was appointed as vice chairman of the company.
Mr Sajwani relaunched a bid in September to take Damac Properties private through Maple Invest, a British Virgin Islands company he owns, after securing regulatory approval to buy shares in the developer.
Maple Invest said in a June 9 statement it plans to own a minimum of 90 per cent and up to 100 per cent of the developer.
Damac, known for its luxury branded real estate projects with fashion houses and for building the Middle East’s only Trump-branded golf course, has recorded successive quarterly losses. However, the company narrowed those in the second quarter this year, boosted by a recovery in the UAE property sector.
The developer reported a loss of Dh101m ($27.5m) in the second quarter, compared with a Dh280m loss in the same period in 2020. Revenue fell to Dh735.75m compared with Dh1.14 billion a year earlier.
Damac, which has a market capitalisation of more than $2bn, reported booked sales of Dh2.6bn for the first six months of the year and the delivery of 2,700 units in Dubai.Internet Explorer Channel Network