Dubai's DXB Entertainments to hire advisors to review Meraas' buyout offer

Firm still to approve review in a meeting set for December 30, 2020

  
Brand Dubai the creative arm of the Dubai Media Office partners with Meraas Dubai to host this year’s edition of Dubai Canvas at City Walk. Image courtesy Dubai Media Office Twitter handle.

Brand Dubai the creative arm of the Dubai Media Office partners with Meraas Dubai to host this year’s edition of Dubai Canvas at City Walk. Image courtesy Dubai Media Office Twitter handle.

DXB Entertainments (DXBE) is set to hire some advisors to review Meraas’ proposal to buy out the troubled theme park operator.

DXB Entertainments is the owner and operator of Dubai Parks and Resorts, the region’s leading integrated leisure and entertainment destination.

State-backed Meraas Leisure and Entertainment made a conditional offer on December 20, 2020 to pay in cash and acquire the remaining shares of DXBE.

According to Refinitiv Eikon data, the Dubai property firm owns 52.3 percent of DXBE, while Qatar Investment Authority holds 10.98 percent and Kuwait Investment Authority, a little over 5 percent.

In a bourse filing on Monday, the owner of Dubai Parks and Resorts said it will be considering a resolution on December 30, 2020 to review and approve the appointment of the financial and legal advisors for the purpose of evaluating Meraas’ offer.

As of September 30, 2020, the company’s accumulated losses amounted to 6.217 billion dirhams. Its net loss for the first nine months of the year hit more than 1 billion dirhams.

(Reporting by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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© ZAWYA 2020


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