Deyaar is taking direct action to offset the accumulated losses, with a reduction in share capital. Image Credit: Supplied

Dubai: Dubai developer Deyaar shares on DFM will be suspended on June 10 and 13 as part of the capital reduction process it is getting into to offset accumulated losses. The change in the issued share capital will be done after the close of the DFM market on June 13. The first trading date with the revised capital will be June 14.

Deyaar’s accumulated losses stood at Dh1.7 billion, when the company decided that a share reduction was the best course open to it. “We would like to notify the shareholders the company has completed the procedures to obtain the final approval for capital reduction from Securities and Commodities Authority,” Deyaar said in a statement.

A sizeable part of the accumulated losses stemmed from exposures from more than 10 years when the property market had been through a downturn. There are also impairment charges related to Deyaar’s more recent operations.

The issued share capital will be cut from Dh5.77 billion to Dh4.37 billion, through the partial write-off of the Dh1.7 billion in combined losses as of end 2021 using legal reserves of Dh303.47 million. Shares equivalent to Dh1.4 billion will be cancelled simultaneously.