Board of Dubai's DAMAC backs founder's takeover, delisting bid

The takeover is taking place amid a recent resurgence in Dubai's high-end real estate sector

  
Hussain Sajwani, Chairman, DAMAC Properties.

Hussain Sajwani, Chairman, DAMAC Properties.

QUILL MENA/handout via Zawya

DUBAI- Dubai's DAMAC Properties on Thursday said its board has unanimously recommended minority shareholders accept founder Hussain Sajwani's offer to buy them out and delist the company.

If accepted, BlackRock, State Street and other minority shareholders will receive 1.4 dirham ($0.38) in exchange for each share that they hold, according to the offer.

Sajwani, who in 2002 set up the developer that owns the only Trump-branded golf course in the Middle East, in September received regulator approval for his takeover bid. 

The takeover is taking place amid a recent resurgence in Dubai's high-end real estate sector, though S&P this month cautioned that demand was uneven across the sector where prices have long been weakened by excessive supply. 

The board's decision to endorse the offer was made by members who did not have a conflict of interest with the deal and following independent advice, DAMAC said.

Sajwani stepped down as chairman and from the board in June after the takeover bid was announced.

($1 = 3.6728 UAE dirham)

(Writing by Alexander Cornwell; editing by Jason Neely) ((Alexander.Cornwell@thomsonreuters.com;))


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