Emaar Properties offers Dh15-per-share cash in Emaar Development buyout

Dubai: Emaar Properties has announced plans to acquire the remaining shares in Emaar Development for Dh15 apiece in cash, confirming an earlier Bloomberg report that the Dubai-based property group was considering a multibillion-dollar buyout of its listed subsidiary.

In a stock exchange disclosure on Wednesday, Emaar Properties said it intends to make a voluntary cash offer for up to 100% of Emaar Development's issued and paid-up share capital not already owned by the parent company and its indirectly wholly owned subsidiary, Emirates Property Holdings Limited (EPHL).

The proposed offer remains subject to approval from Emaar Properties' board of directors. Bloomberg reported earlier that acquiring the remaining shares could cost as much as $3.2 billion based on prevailing market prices.

Emaar Properties currently owns just over 79% of Emaar Development. The proposed transaction would consolidate ownership of Emaar Development, the group's residential property development business, which was listed on the Dubai Financial Market in 2017 through an initial public offering that raised approximately $1.3 billion.

The proposed buyout follows Emaar Properties' earlier review of options to enhance shareholder value, according to Bloomberg, which reported on Tuesday that the company had sought legal and financial advice as part of that process.

Analysts at CI Capital previously said full ownership of Emaar Development could give the parent company greater flexibility to deploy cash towards recurring-income assets, international expansion and dividends.

Emaar Properties previously took its listed malls subsidiary private through an all-share transaction in 2021. The latest disclosure establishes the proposed cash offer price, although the transaction remains conditional on board approval.