Emaar Malls Management has said it has entered into a definitive share purchase agreement with Noon to divest 100% of its stake in online fashion retailer Namshi, and expects the transaction to close in the next six months.
Dubai-listed Emaar announced earlier this week that it expected to make a $171 million profit on the sale.
The AED 1.23 billion ($335.2 million) transaction is subject to approvals from shareholders and regulators, Emaar Malls said in a statement released today.
“The transaction is in line with Emaar’s strategy to divest assets that are not core to its primary business so as to create and sustain value for its shareholders,” the statement said.
“Proceeds from the transaction will be invested by Emaar into its core real estate development business in line with Emaar’s strategy to redeploy capital across the group with a focus on investing in businesses that are of core strategic value.”
An Noon spokesman said the company would assist Namshi in its growth to the next level.
Emaar Properties shareholders are due to vote on the transaction, well as Emaar’s planned acquisition of Dubai Holding assets, at the general assembly, to be held next month, the company announced today.
(Writing by Imogen Lillywhite; editing by Seban Scaria)