Friday, Dec 17, 2010
Gulf News
Other better and viable options identified, statement says
Dubai Developer Emaar Properties is no longer considering the option to convert into equity a Dh230 million loan it extended to Amlak Finance as part of the troubled Islamic mortgage lender’s restructuring as “other better and viable options have been identified”, it said in a statement.
“The restructuring of Amlak Finance is being managed by a committee, which is currently considering a number of options ... and the interests of all the stakeholders,” the statement said.
“There was an option earlier considered involving the longer-term loan of Dh230 million by Emaar Properties to Amlak Finance be converted into equity. However, other better and viable options have been identified, which are now being considered and discussed,” it said.
“The management and the board of Emaar will ensure that interests of its shareholders and stakeholders are considered in acceptance of any option as discussed by the committee.”
Amlak was slated to be merged with another Dubai mortgage lender, Tamweel, but the deal did not materialise. In September, Dubai Islamic Bank became the biggest single shareholder in Tamweel and said it will consider injecting new cash into the lender. DIB now has a 57.33 per cent stake in Tamweel, up from 19.9 per cent previously.
Emaar’s shares closed up 0.85 per cent at Dh3.55 yesterday on the Dubai Financial market.
— with inputs from agencies
figures
LOng-term loan
Dh230m
loan extended by ?Emaar
57.33%
Dubai Islamic Bank’s stake in Tamweel
restructure
The management and the board of Emaar will ensure that interests of its shareholders and stakeholders are considered in acceptance of any option as discussed by the committee.”
Emaar statement
Staff Report
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