Dubai: Emaar Properties has received the regulatory go-ahead for its planned re-merger with Emaar Malls, the company that owns The Dubai Mall. This was granted by Securities & Commodities Authority. Emaar Properties had made its intentions about the merger plan in early March.
This will see Emaar Malls’ shareholders (excluding those in Emaar Properties) receiving 0.51 Emaar Properties shares for every one Malls share. This represents a premium of 7.1 per cent to the closing price of Emaar Malls on March 1, the last trading day prior to the merger announcement. (It is a premium of 11.2 per cent to the market implied exchange ratio based on volume weighted average prices over the last one month to March 1).
This represents a premium of 3.5 per cent to the closing price of Emaar Malls on September 1. The merger is subject to meeting multiple conditions, including approval of the merger by shareholders who own at least 75 per cent of the shares represented at general meetings of Emaar Properties and Emaar Malls.
According to market sources, the vote should sail through, with a combined entity being seen as providing long-term value for shareholders as well.