Dubai: Damac Properties has confirmed Farooq Arjomand, as the new Chairman with immediate effect, following the stepping down of Hussain Sajwani, the company's founder, from the role. Arjomand had been Vice-Chairman at Damac.
It was last week that Sajwani confirmed he was quitting the chairman’s role, given the likely conflict of interest involved in his investment company buying up the 27 per cent stake held by outsiders in Damac. Sajwani’s Maple Invest has formally made its pitch for the takeover to the Damac Board of Directors.
Sajwani did not want to be heading the Board that was to take a decision on the Maple offer. (He owns 100 per cent of Maple Invest, which is registered in British Virgin Islands.) There was some talk in the market that he may still choose as the new chairperson from within the family.
Who is Farooq Arjomand?
A banker by profession and standing, Arjomand was one of the founding members of the board at the Dubai mortgage services provider Amlak Finance. He currently heads the Arjomand Group, which has diversified business interests. He started his career at HSBC in 1984 and went on to spend a further 17 years.
What next for Damac and Sajwani?
Damac has confirmed the appointment of an independent committee of its Board of Directors to review and assess the Maple offer, which prices each outstanding share at Dh1.3. Maple has already made it clear that this price is final.
The Board of Directors also approved Al Tamimi & Company as legal advisor, while KPMG Lower Gulf Ltd. as the valuer to Damac. Arqaam Capital ltd. will be the financial advisor to Damac for the purpose of evaluating the offer from Maple.
Maple will shortly be issuing further details regarding the opening and closing of the offer period. It will set its target on taking Sajwani’s stake to 90 per cent at the earliest, which will allow it to initiate the process to unilaterally pick up the remaining 10 per cent.