Dubai-based property developer Damac's shareholders will meet on October 20 to vote on its billionaire founder's bid to buy out minority shareholders in exchange for $595 million and privatize the company, it said on Monday in a statement to the Dubai Financial Market where it is listed.
Hussein Sajwani said last week he would proceed with the acquisition through his British Virgin Islands-based investment vehicle, Maple Invest, following the regulatory approval for the offer from Securities and Commodities Authority. Maple Invest had said in a June 9 statement to the DFM that it plans to own a minimum of 90 per cent and up to 100 per cent of Damac. Sajwani currently owns 72 percent of the property company.
According to the statement to DFM on Monday, the agenda would include a resolution that would amend the articles of association to include that once the company acquires more than 90 percent of the shares, it may "submit an application to the Authority for approval to submit a mandatory offer to enforce the minority shareholders of the company to sell/swap all the shares held by them in favor of the acquirer..."
The offer price for the acquisition is 1.3 dirhams ($0.35) per share.
The developer, which has recently partnered with Italian fashion house Cavalli to develop a $545 million skyscraper in Dubai, posted a net loss of 101 million dirhams for the second quarter of 2021 compared with the 280 million dirhams net loss a year earlier.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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© ZAWYA 2021