Eshraq Properties signals interest in acquisition deals

Dubai: Eshraq Properties signalled on Thursday it is still eyeing acquisitions, two days after it dropped plans to merge with Reem Investments.

The Abu Dhabi-listed property developer added that it is considering further growth options including opportunities to enhance its capital structure and shareholder returns.

“In the current environment, Eshraq’s unlevered balance sheet and excess liquidity remain ideal for acquisition of income-generating assets. Eshraq is actively seeking to deploy its excess liquidity in income-generating investments across the UAE,” a statement from Eshraq said.

The company’s share prices jumped 7.14 per cent on the announcement.

The statement posted to the Abu Dhabi Securities Exchange (ADX) website comes two days after Eshraq said it will not complete merger plans with Reem as the two parties “have not been able to agree on major commercial matters underpinning the deal.”

The deal would have created Abu Dhabi’s second largest listed property developer, and news of its cancellation saw Eshraq’s share prices dive 8.8 per cent on Tuesday. Eshraq in late August 2017 said it was in advanced discussions regarding Reem coming in as a strategic shareholder. This would be in return for Eshraq’s acquisition of Reem’s business and assets.