Dubai’s biggest listed developer Emaar Properties received shareholder approval for the acquisition of Dubai Creek Harbour from Dubai Holding and the sale of its stakes in fashion retailer Namshi to Noon, an e-commerce company, it said on Wednesday.
Emaar Properties agreed to fully acquire Dubai Creek Harbour from Dubai Holding for Dh7.5 billion ($2.04bn) last month.
The amount is to be paid equally in cash and shares of Emaar Properties.
“Shareholders approved a motion to acquire assets from Dubai Holding and the issuance of a mandatory convertible bond with an aggregate value of Dh3.75bn to Dubai Holding,” Emaar said in a statement.
The deal makes Dubai Holding the second-largest shareholder of Emaar.
The convertible bond component of the deal will be converted into 659,050,967 new shares in Emaar Properties, and the company’s share capital will increase to about Dh8.84bn, the statement said.
Emaar shareholders also approved the sale of Namshi to Noon, a company founded by Emirati businessman Mohamed Alabbar, for a total cash consideration of Dh1.23bn ($335.2 million), representing a premium of Dh127m on the total investment by Emaar Malls Management, a wholly-owned subsidiary of Emaar Properties, in Namshi.
The Namshi transaction is in line with Emaar’s strategy to divest assets that are not core to its primary business and to create and sustain value for its shareholders, the company said.
Emaar said it will invest proceeds from the sale into its core property development business.
The transaction is expected to close in the coming months, subject to meeting various conditions, including final regulatory approvals.
Shareholders also approved a special resolution regarding the abolition of the minimum shareholding of UAE and GCC nationals in the company and removing the shareholding limit for foreign investors.
“Today's general assembly meeting represents the final step in the completion of two high-profile transactions for Emaar, which both reflect the company's ongoing strategy to maximise the core business while continuing to offer outstanding value for our shareholders,” an Emaar representative said.