Leading Dubai developer Emaar Properties has announced that it has won approval from the capital market regulator, Securities & Commodities Authority (SCA), for the group's proposed merger with its shopping malls and retail business unit, Emaar Malls.

 

As disclosed by Emaar in March, the proposed merger has the unanimous support and recommendation of the board of directors of both entities and will be conducted through a share swap deal.

 

Under this arrangement, Emaar Malls' shareholders, excluding Emaar Properties, would receive 0.51 Emaar Properties share for every Emaar Malls share.

 

This represents a premium of 7.1% to the closing price of Emaar Malls on March 1, the last trading day prior to the merger announcement, and a premium of 11.2% to the market implied exchange ratio based on volume weighted average prices over the last one month to March 1, the statement said.

 

This also represents a premium of 3.5% to the closing price of Emaar Malls on September 1 and a premium of 4.4% to the market implied exchange ratio based on volume weighted average prices over the last one month to September 1, it added.

 

Emaar Properties currently owns 84.6% of Emaar Malls. Following the merger, Emaar Malls would no longer be listed.

 

As per the proposal, the existing business of Emaar Malls will be reconstituted in a wholly owned subsidiary of Emaar Properties and will continue to develop and hold a portfolio of premium shopping malls and retail assets, said Emaar in its filing to the Dubai Financial Market.

 

The merger will further reinforce Emaar Properties’ position as Mena’s largest integrated and diversified real estate company, thus ensuring both Emaar Properties and Emaar Malls are strategically positioned to capture opportunities in the marketplace and drive shareholder value, it stated.

 

Following the SCA nod, the boards of directors of Emaar Properties and Emaar Malls will circulate a resolution on September 9 inviting the shareholders to attend the General Meeting of the companies, which will be held both physically and remotely/electronically on October 10, it added.-TradeArabia News Service