Dubai's Amlak seeks approval to sell real estate finance portfolio - its stock is up 90%

Dubai: Shareholders of Amlak, the Dubai-based finance company, will soon get to decide whether to exit in full from the real estate finance portfolio.

If the shareholder approval is got, Amlak could sell financial contracts that it currently holds to other institutions. It could also exit finance contracts through 'mutual agreement' with customers.

The meeting will be held June 30.

In the last month, the stock has gained over 90%. It is trading at Dh1.62.

Shareholders will also get the chance to authorize the Amlak Board of Directors - or any person authorized by the Board - to 'approve such transaction and offer discounts and waivers as may be deemed necessary to undertake such transactions'.

This was confirmed by DFM-listed Amlak in a statement, and if the plan goes through will mean a major milestone in the company's turnaround plan.

Amlak shareholders will also need to approve the transferring the balance of the legal reserve and special reserve - totaling Dh307.3 million and Dh99.2 million, respectively - to offset the company's accumulated losses.

Soon, Amlak could get another financial boost if the deal with Emaar to sell the latter a parcel of land in Ras Al Khor for Dh2.9 billion clears all the regulatory processes.

Amlak was launched as a standalone home finance company, but in the years after the 2008 financial crisis, the company has been through trying times. Losses mounted, and there were efforts to recast itself as a full-play finance company rather than just be in mortgages.

The June 30 shareholders' meeting will thus be a key part of that next stage, one in which the company can move on from the past.