It was in 2017 that Emaar bought a majority in Namshi. Image Credit: Virendra Saklani/Gulf News

Dubai: Emaar Properties’ shareholders approved the acquisition of Dubai Creek Harbour from Dubai Holding LLC and the sale of Namshi Holding Ltd to Noon AD Holdings Ltd, at a general meeting on Wednesday.

Namshi was sold by Emaar Malls Management, a wholly-owned subsidiary of Emaar Properties.

Shareholders approved a motion to acquire assets from Dubai Holding and the issuance of a mandatory convertible bond with an aggregate value of Dh3.75 billion to Dubai Holding. This represents the share element of an overall consideration of Dh7.5 billion to be paid equally in cash and shares of Emaar Properties, making Dubai Holding the second largest shareholder of Emaar.

The mandatory convertible bond will be convertible into 659.051 million new shares in Emaar Properties, and the company’s share capital shall be increased to Dh8.84 billion on the conversion of a such mandatory convertible bond.

Shareholders also approved the sale of Namshi to Noon for a total cash consideration of Dh1.231 billion, representing a premium of Dh127 million on the total investment by Emaar Malls Management in Namshi.

The sale is representative of Emaar’s strategy to divest assets which are not reflective of its core business, with proceeds to be reinvested into the real estate development business, building on its core elements and offering a sustained value for shareholders.

The transaction is expected to close in the coming months, subject to meeting various conditions, including final regulatory approvals.

Shareholders also approved a special resolution regarding the abolition of the minimum contribution of UAE nationals and GCC nationals in the company, meaning there is no minimum shareholding for UAE nationals and GCC nationals, and no shareholding limit for non-UAE nationals.

A spokesperson for Emaar said: “Today’s general assembly meeting represents the final step in the completion of two high-profile transactions for Emaar, which both reflect the company’s ongoing strategy to maximise the core business, while continuing to offer outstanding value for our shareholders.”

Emaar recorded sales of Dh4.2 billion in 2021 and Dh3.6 billion sales in Dubai Creek Harbour in the first half of 2022. Dubai Creek Harbour has approximately 100 million sq. ft of future development which will provide future profit potential to Emaar.

It was in 2017 that Emaar bought a majority in Namshi and then two years later, bought up the rest of it. Through the Covid phase, Namshi was central to Emaar’s online shopping prospects and staying connected with the shopper base. Noon shareholders include Saudi wealth fund PIF as well as the Emaar founder Mohammed Alabbar.