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Dubai's Emaar Properties said on Tuesday its sale of fashion e-commerce venture Namshi to e-commerce company Noon, will result in a net profit of AED 628.7 million ($171 million) based on the asset value recorded in Emaar's books as of June 30, 2022.
Last week, Dubai's biggest developer said its board had in principle approved the sale for $335.2 million.
The buyer, Noon, is an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF).
Emaar said the deal, a related party transaction as Alabbar is managing director and board member of Emaar and owns a 54% stake in Noon, was in line with its strategy to divest non-core assets. The proceeds will be invested in the core real estate business, it added.
Emaar Properties said the profit will be recorded in its books on completion of regulatory approvals expected within the next six months. A general meeting will be "held soon" to obtain shareholder approval, it added.
Emaar bought Namshi for a total of $281 million after first acquiring a 51% stake in 2017 before buying the remaining 49% in 2019, according to Reuters.
(Reporting by Brinda Darasha; editing by Seban Scaria)