Emaar Properties said it intends to make a voluntary cash offer of AED 15 per share for the Emaar Development shares it does not already own.
Emaar Properties PJSC said on Wednesday it intends to make a voluntary cash offer of AED 15 per share for up to 100% of Emaar Development PJSC that it does not already own, subject to board approval.
The company told the Dubai Financial Market (DFM) in a disclosure that the offer is for the issued and paid-up share capital of Emaar Development not held by Emaar Properties and its indirect wholly owned subsidiary, Emirates Property Holdings Limited (EPHL).
The offer is in cash and is described as voluntary. It is subject to the required approval from the Board of Directors of Emaar Properties. A copy of the disclosure went to the Capital Market Authority (CMA).
The disclosure was signed by Ahmad Thani Rashed Almatrooshi, executive director, and addressed to Hamed Ali, chief executive officer of the DFM.
For holders of Emaar Development shares other than Emaar Properties and EPHL, the stated price is AED 15 for each share, paid in cash.
Emaar Development is the UAE property development business of Emaar Properties, the parent company said in its investor relations FAQ. It develops residential and commercial build-to-sell assets in the country.
It was listed on the DFM through an initial public offering in November 2017. That offering was a sale of existing Emaar Development shares held by Emaar Properties.
Some 20% of the company was expected to be offered. Emaar Properties said then that it would keep the remaining stake.
The retail subscription period for UAE residents was expected to run from November 2 to November 13, 2017, with trading expected to begin on Wednesday, November 22, 2017. The minimum investment was set at AED 10,000.
Eligible investors were UAE residents with an up-to-date National Investor Number registered with the DFM. They could apply online through the DFM eIPO platform, at designated bank branches, or through Emirates NBD and Ajman Bank online banking and ATMs.
A third-party valuation by JLL put Emaar Development’s total Gross Asset Value at AED 35.6 billion and its Adjusted Net Asset Value at AED 24.1 billion as of September 2017.
Emaar Properties said at the time that the proceeds would be primarily distributed as a special dividend to its shareholders, subject to board approval.
Emaar Development targeted aggregate dividends of no less than US$1.7 billion for the three financial years ending December 31, 2020. It said any payment depended on future profits and the business plan, at the discretion of its board.
Emaar Properties also said Emaar Development had a right of first refusal on all of the parent’s development projects in the UAE.
Emaar Properties was incorporated in 1997, is headquartered in Dubai and was listed on the DFM on March 26, 2000. It has 7.159 billion shares, and total foreign ownership of its stock is capped at 49%.
Emaar Development’s communities in Dubai include Emirates Living, Downtown Dubai and Dubai Marina, the company said.
