28 June 2009
Emaar Properties yesterday said it expects to complete the proposed merger with three Dubai Holding entities within four months.
It said it is in advanced discussions with Dubai Holding with regards to an intended combination of Emaar, Dubai Properties, Sama Dubai and Tatweer.
It is currently estimated that the process of consolidation will take approximately four months to be completed, which will include due diligence of the entities, detailed valuation exercise, completion of legal documentation, agreement with regulatory authorities in respect of the structure and the process, and shareholders approval.
A tentative timeline for legal and financial due diligence of the entities is by September; valuation exercise by August; completion of legal documentation by September and agreement with regulatory authorities in respect to the structure and the process by October followed by shareholders approval also by October, said an Emaar statement. There are detailed work streams for each and the overall timelines are current estimates and are subject to change based on progress of the various milestones, it added. Emaar said as the discussions progress, timely updates will be provided to the market.
Emaar and Dubai Holdings with the assistance of their financial advisors, the Royal Bank of Scotland and Merrill Lynch International, are in the process of finalising a thorough assessment of the merits of this proposed consolidation, including the valuation of the various entities as well as the assessment of the potential transaction structures. Discussions are also being held with relevant regulatory authorities.
The proposed consolidation comes within the resolute dedication to transform Dubai into a global city since construction and development is a primary engine of growth. Dubai will thus rise up to the current challenges with hallmark agility and responsiveness. said the statement
The consolidation of these leading real estate entities will not only build on the remarkable achievements in Dubai during the last three decades, but more importantly, marks the start of a new chapter in the annals of real estate globally.
The Emaar statement quoted Mohammed Al Gergawi, Chairman of Dubai Holding, as saying: "Consolidating these three companies with Emaar is a natural progression in the evolution of the Dubai real estate landscape, providing benefits to all stakeholders.
"By joining forces, we will give the larger combined entity an unparalleled platform to optimise opportunities in its domestic and international markets. The combined entity has a clear and concise strategy, better positioning Dubai as a world-leading hub in real estate development and management."
Mohamed Alabbar, Chairman of Emaar, said: "We believe that there could be exceptional synergies between Emaar and Dubai Holding's key real estate businesses. These comprehensive discussions are driven by a shared vision regarding the consolidation of our respective visible success stories to date and the creation of a world-class group which would be ideally positioned to dynamically help shape and support the ongoing development of Dubai as a world-leading hub. We look forward to working with Dubai Holding with a view to completing these discussions soon and ensuring value accretion to our existing shareholders."
Emaar Properties yesterday said it expects to complete the proposed merger with three Dubai Holding entities within four months.
It said it is in advanced discussions with Dubai Holding with regards to an intended combination of Emaar, Dubai Properties, Sama Dubai and Tatweer.
It is currently estimated that the process of consolidation will take approximately four months to be completed, which will include due diligence of the entities, detailed valuation exercise, completion of legal documentation, agreement with regulatory authorities in respect of the structure and the process, and shareholders approval.
A tentative timeline for legal and financial due diligence of the entities is by September; valuation exercise by August; completion of legal documentation by September and agreement with regulatory authorities in respect to the structure and the process by October followed by shareholders approval also by October, said an Emaar statement. There are detailed work streams for each and the overall timelines are current estimates and are subject to change based on progress of the various milestones, it added. Emaar said as the discussions progress, timely updates will be provided to the market.
Emaar and Dubai Holdings with the assistance of their financial advisors, the Royal Bank of Scotland and Merrill Lynch International, are in the process of finalising a thorough assessment of the merits of this proposed consolidation, including the valuation of the various entities as well as the assessment of the potential transaction structures. Discussions are also being held with relevant regulatory authorities.
The proposed consolidation comes within the resolute dedication to transform Dubai into a global city since construction and development is a primary engine of growth. Dubai will thus rise up to the current challenges with hallmark agility and responsiveness. said the statement
The consolidation of these leading real estate entities will not only build on the remarkable achievements in Dubai during the last three decades, but more importantly, marks the start of a new chapter in the annals of real estate globally.
The Emaar statement quoted Mohammed Al Gergawi, Chairman of Dubai Holding, as saying: "Consolidating these three companies with Emaar is a natural progression in the evolution of the Dubai real estate landscape, providing benefits to all stakeholders.
"By joining forces, we will give the larger combined entity an unparalleled platform to optimise opportunities in its domestic and international markets. The combined entity has a clear and concise strategy, better positioning Dubai as a world-leading hub in real estate development and management."
Mohamed Alabbar, Chairman of Emaar, said: "We believe that there could be exceptional synergies between Emaar and Dubai Holding's key real estate businesses. These comprehensive discussions are driven by a shared vision regarding the consolidation of our respective visible success stories to date and the creation of a world-class group which would be ideally positioned to dynamically help shape and support the ongoing development of Dubai as a world-leading hub. We look forward to working with Dubai Holding with a view to completing these discussions soon and ensuring value accretion to our existing shareholders."
By Staff Writer
© Emirates Business 24/7 2009
