Property developer Damac has suspended trading on Dubai Financial Market (DFM) as the company continues on its course towards going private.

In a statement to Nasdaq Dubai, Alpha Star Holding V Limited, of which Damac is the parent company, said Damac shareholders were notified that the notice period for the mandatory acquisition ended on 13 February 2022.

Maple Invest Co Limited  has not received any objections from shareholders regarding the mandatory acquisition, the statement said.

Damac said it will instruct DFM to suspend trading of its shares, effective today (Tuesday).

All remaining Damac shares not already held by Maple, an investment vehicle fully owned by Damac founder Hussain Sajwani, will be re-registered in the name of Maple in Damac’s share register as of 20 February 2022.

In a statement alongside financial results for 2021 published yesterday, Damac said it was optimistic about the coming year, announcing a net loss of AED 531 million ($144.6 million) in 2021, which narrowed from its 2020 loss of AED 646 million. 

It was announced last year that the then chairman of Damac Hussain Sajwani was considering taking the company private. Sajwani subsequently resigned his position and the takeover bid was launched.

Sajwani founded Damac in 2002, and has been a prominent voice in Dubai’s real estate sector, remarking in early 2021 that it could be 2023 before there was a “substantial recovery” in the industry after the impact of the COVID-19 pandemic.

However, in an interview with Bloomberg in November 2021 he rowed back on his comments, saying he was “totally wrong” and that he expected the “surprising” rebound Dubai’s real estate sector to continue in 2022.

(Writing by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@lseg.com

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