DUBAI: Emaar Properties yesterday said its merger with three Dubai companies would create a giant real estate group with an asset base of AED194 billion ($52.8 billion) and a debt of AED13.4 billion, or roughly 7 percent of the total assets.
In a letter posted yesterday on the Dubai Financial Market's website, Emaar Chairman Mohammed Alabbar said its proposed merger with Dubai Holding subsidiaries Dubai Properties LLC, Samar Dubai LLC and Tatweer LLC would take up to four months. "The proposed consolidation would create a robust and strategic asset base while joining the strengths" of the various companies," Alabbar said.
As of March 31, Emaar had a total book value of AED68 billion and debt of AED10 billion, or roughly 15 percent of the total assets, he noted.
According to Alabbar, the preliminary review of the three companies with whom the merger is proposed show that by the end of the 2008, they had a combined asset book value of AED129 billion and total external debt of roughly AED3.4 billion , or about 2.7 percent of their asset value.
By K.T. Abdurabb
© Arab News 2009
