Saturday, Nov 21, 2009
DUBAI (Zawya Dow Jones)--Talks on the merger of Emaar Properties PJSC (EMAAR.AI) with three state-owned developers should be completed in about a month, with the new entity set to announce new projects as soon as the merger is complete, Emaar's chairman said in a television interview aired Saturday.
"After the merger, new projects will be immediately announced. They will be unique in design, and at good prices that suit the market," Mohamed Al Abbar told Al Arabiya television.
Asked when the talks are expected to conclude, Al Abbar said, "about one month." He did not specify an exact date for the finalization of the merger.
There are no plans to de-list the new company once the merger is complete, he said. "We are in the market to stay," Al Abbar noted, adding that the new entity will be better positioned to meet Dubai's real estate needs.
In June, Emaar Properties announced plans to merge with Dubai Holding's units --Dubai Properties LLC, Sama Dubai LLC, and Tatweer LLC-- to help absorb the impact of the collapse of the emirate's real-estate market where prices have tumbled up to 50%.
"This kind of unit [company] will be able to meet the customers needs, and Dubai's strategic needs," Al Abbar said, adding that supply and demand in Dubai's real estate market has nearly reached "a balance."
Al Abbar reaffirmed that the merger will benefit Emaar shareholders, "especially small ones," adding it will have a positive effect on the stock going forward.
"We were profitable in the third quarter... and I see the same for the fourth," he said, adding that he believes 2010 will be a year of "good results" for the company.
Al Abbar said Friday the merger was running late to ensure "a good job" and that it would work for the benefit of the company and its shareholders. -By Nour Malas, Dow Jones Newswires, +9714 364 4960; nour.malas@dowjones.com
Copyright (c) 2009 Dow Jones & Co.
(END) Dow Jones Newswires
21-11-09 1312GMT