Maple Invest Co. (Maple), owned by Hussain Sajwani, has offered to acquire 100 percent of the issued and paid-up ordinary share capital of Damac PJSC, thereby turning the Dubai-based luxury property developer private.
Maple Invest Co, currently owns 88.10 percent of DAMAC. The transaction will result in Maple owning no less than 90 percent and up to 100 percent of Damac, and that the intention is for shares to be de-listed, Reuters reported.
Hussain Sajwani, has now resigned as chairman and board of director of DAMAC PJSC to prevent conflict of interest, a statement to Nasdaq Dubai revealed this morning.
The remaining board directors of DAMAC PJSC will appoint a new independent board director and chairman, who will be an Emirati national.
According to Reuters, the total value of the offer will be AED 935.5 million ($255 million) assuming that all DAMAC shareholders, excluding ultimate offeror's interest, avail the offer.
Last year Reuters reported that Sajwani was planning to buy out minority stakeholders to take the $1.1 billion Dubai-listed company private.
In February Sajwani urged patience, saying market recovery post COVID-19 could be as far away as 2023, after DAMAC Properties 2020 losses were revealed to be $297 million.
DAMAC Properties reported a loss of $51.7 million in the first quarter of 2021.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
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