DXB Entertainments chief executive Mohamed Almulla steps down

The company's chief financial officer Remi Ishak will take over the helm as acting CEO from January 1

DXB Entertainments, operator of Dubai Parks and Resorts, is planning to hire advisers to evaluate the state-owned Meraas Leisure and Entertainment offer to acquire its debt and take it private. Courtesy Dubai Parks and Resorts.Show less

DXB Entertainments (DXBE), the operator of Dubai Parks and Resorts, appointed its chief financial officer Remi Ishak as acting chief executive.

Mr Ishak will replace Mohamed Almulla at the helm of the company starting from January 1, the company said in a filing to the Dubai Financial Market on Thursday. He will also continue his duties as chief financial officer, a position he took up in April.

The acting chief executive will "focus on ensuring the smooth continued operations of the company while the board of directors continues its search for a permanent CEO," DXBE said.

The leadership change comes as the company mulls an offer by Dubai property company Meraas, which owns more than half of DXBE, to buy the remaining shares and take it private.

Mr Ishak has more than a decade of experience in leadership roles in the property and hospitality sectors.

The company said it accepted the resignation of Mr Almulla but did not provide a reason for his departure.

“Mr Almulla and the team at DXB Entertainments have created a world class asset that has become an integral part of the UAE’s tourism ecosystem,” the company said in a statement. “Under his leadership, DXB Entertainments has transitioned from the construction phase to the operational phase and has achieved several important milestones.”

On December 30, DXBE said it will hire KPMG and Shuaa Capital as financial advisers and Allen & Overy as legal adviser to evaluate Meraas' buyout offer.

Meraas Leisure and Entertainment and its parent Meraas Holding currently have a 52.29 per cent stake in the company. They have offered to acquire the company's debt worth Dh4.26 billion ($1.16bn) and convert a $1.48bn bond in return for newly issued shares in the business. This would increase its ownership to 93.92 per cent. Following this, it is proposing to buy out minority shareholders and take the company private.

DXBE posted a loss of Dh1.06bn for the first nine months of this year and its total accumulated losses reached more than Dh6.2bn as of September 30.

Dubai Parks and Resorts, which opened in October 2016, comprises three separate theme parks including Legoland Dubai, Bollywood Parks Dubai and a Motiongate theme park.