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Dubai-based theme park operator DXB Entertainments has amended the Articles of Association to facilitate its takeover by Dubai property company Meraas.
In a filing to Dubai Financial Market, DXBE said it has added a clause to the Articles of Association that stipulates that any shareholder who owns 90 per cent plus one additional share in DXBE’s issued share capital has the right to enforce its minority shareholders to sell or swap shares owned by them in favour of the 90 per cent plus shareholder.
DXBE, which operates Dubai Parks and Resorts theme parks, has seen continued losses while attempts at expansion restructuring have failed. It saw losses widen to 7.8 billion dirhams in 2020 following months of closures and measures to restrict the spread of COVID-19.
Meraas Leisure and Entertainment in December announced its intent to buy out minority shareholders and take DXBE private. Earlier this month, DXBE’s shareholders passed a resolution enabling Meraas to acquire the senior bank debt of DXBE and subsequently convert this debt into new shares of DXBE at a conversion price of 0.08 dirhams per share.
They also authorised the company to increase its share capital by 53.03 billion dirhams to 62.82 billion dirhams through the issuance of 53,391,475,304 new ordinary shares of 1 dirham each in the share capital of the company to Meraas by converting the outstanding bank debt.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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© ZAWYA 2021
