DXB Entertainment (DXBE) has announced that it will transfer AED 4.27 billion ($1.16 billion) debt to Dubai developer Meraas Leisure and Entertainment Ltd in exchange for 53 billion ordinary shares at a conversion rate of AED 0.08.
Shareholders agreed at its general assembly yesterday (Monday) that the company would convert its debts with Emirates NBD into ordinary shares valued at AED 1 each in the share capital of the company, at a conversion price of AED 0.08 per share, the company said in a statement to Dubai Financial Market (DFM).
The shareholders of the theme park operator also authorised an increase in share capital from AED 53 billion to AED 62.8 billion, as well as the listing of the conversion shares on DFM.
The company said 81 percent of shareholders attended the meeting and approved all resolutions.
The shares of those who accepted the offer would now be registered to Meraas in DXBE’s shareholders register, the company said.
DXBE operates Dubai Parks & Resorts, which incorporates Legoland Dubai, Motiongate Dubai, Bollywood Parks Dubai and Legoland Water Park Dubai, as well as hotels.
The company’s board recommended shareholders accept Meraas’s cash offer last month, after losses widened to AED 7.8 billion in 2020.
(Writing by Imogen Lillywhite; editing by Daniel Luiz)
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© ZAWYA 2021