Dubai: The Dubai developer Deyaar has won shareholder approval for reducing its share capital that will help it address the Dh1.7 billion in accumulated losses. It was last year that the company’s Board of Directors had mooted the proposal. Deyaar has set June 6 for the reduction to come into effect.
This will lead to the reduction of the issued share capital of Dh5.77 billion to Dh4.37 billion. It will be done through the partial write-off of the Dh1.70 billion in collated losses as of end 2021 using the legal reserves of Dh303.47 million. A number of shares – equivalent to Dh1.40 billion – will be cancelled simultaneously.
Shareholders have designated the CEO and/or members of its board to take necessary steps for the capital reduction.
Deyaar effected a return to profit last year, helped by its Midtown project as well as the response to the launch of a skyscraper – the Regalia – in Business Bay. It was one of the first offplan projects since the Dubai property market went into a speedy upturn, hitting sellout status without too much of a sweat.