Maple Invest mulls buying Damac Properties; shares jump over 14%

Maple Invest Co said that no firm offer has been made to acquire Dubai's largest private developer

  
DAMAC Awarded ‘Property Developer of the Year’ in 2019 International Business Magazine Awards. Image used for illustrative purpose.

DAMAC Awarded ‘Property Developer of the Year’ in 2019 International Business Magazine Awards. Image used for illustrative purpose.

Damac / Handout via Zawya

Damac Properties' shares jumped more than 14 per cent on Sunday morning after its chairman Hussain Sajwani's Maple Invest Co said that it was exploring a potential acquisition of the developer.

In a statement sent to Dubai Financial Market, Maple Invest Co said that no firm offer has been made to acquire Dubai's largest private developer.

"We note that, as part of our investment strategy, we continuously explore investment opportunities both regionally and internationally, including current opportunities in the UK, Continental Europe, and the USA, as well as the potential acquisition of 100 per cent of the issued and paid-up share capital of Damac Properties Dubai," the statement said.

Damac's shares rose 14.34 per cent from Dh0.109 to Dh0.869 per share on Sunday morning.

"We confirm that we have not made any offer (whether formally or otherwise) or entered into any agreement to-date in relation to the acquisition of Damac Properties. Given that we are still in the process of assessing the acquisition opportunity, this announcement shall not be construed to be an intent of making an offer," Maple Invest Co said.

Quoting three sources, Reuters had earlier reported that Sajwani was considering buying out minority shareholding in Damac and taking the listed company private. As per Refinitive data, Sajwani owns a 72.2 per cent stake in the company.

Damac has $6.34 billion in assets and delivered more than 29,500 units, while over 34,000 were in the planning and construction stages as of March 31, 2020. The company posted a Dh106 million loss in the first quarter, despite a 37 per cent increase in revenues, as it was hit by Dh130 million impairment provisions taken against the value of development properties and Dh52 million impairment against trade receivables.

waheedabbas@khaleejimes.com

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