Dubai: The directors of Al Mazaya Holding have approved a proposal to acquire the remaining stakes in subsidiaries First Dubai and Waterfront, to the tune of 36 and 21 per cent, respectively.
They said in a statement that "keeping the current economic conditions in mind, it could be the right time for the company to think of adding to its assets and acquiring additional real estate assets".
Consolidated
Khalid Esbaitah, CEO and Managing Director of Al Mazaya Holding, said: "Since the start of the econ-omic crisis Al Mazaya has been trying to consolidate operations.
"It was the need of the hour for us as a company to invest in new projects, move out from certain other projects and their operational and functional structure needed to be streamlined as well.
"A part of this overall plan was acquiring the minorities in First Dubai and Waterfront. Last year, when we were considering this deal, we saw that we had a number of other operational priorities relating to our ongoing projects that needed primary focus.
"The advantages of executing this acquisition at that point in time, as compared to the efforts and costs required did not seem appropriate... we feel we can step right ahead with the acquisition to benefit greatly from it."
Esbaitah said the acquisition would increase Al Mazaya's capital and total equity, result in increasing the company's capital adequacy through reducing the debt to capital and equity ratios.
