Damac Properties announced that it has received an offer from the company’s founder and main shareholder, Hussain Sajwani, to buy the stakes of minority shareholders in it for about 2.2 billion dirhams.
The company said in a statement yesterday to the Dubai Financial Market that the offer submitted through Maple Invest to acquire 100% of the company’s issued and paid-in capital shares, will result in Sajwani’s ownership of at least 90% of the issued and paid-up shares of the company.
She added that after the total share of the offeror reaches at least 90% +1, Maple Invest intends to exercise its right to mandatory acquisition of the shares owned by minorities of dissenting shareholders, and then the company’s listing on the Dubai market since 2015 will be canceled.
Sajwani owns, directly or indirectly, legally and effectively, about 72.21%, equivalent to 4.37 billion shares of DAMAC shares, through his company, Maple Invest.
The consideration for the share he will pay under the right to purchase minority shares from the shareholders will be the same as the consideration paid under the offer of 1.3 dirhams per share. She pointed out that if all shareholders agree to the offer to acquire 1.680 billion shares, the total value of the offer will reach 2.185 billion dirhams.
According to the purchase offer, the total value of Damac is about 7.865 billion dirhams.
According to the statement, Sajwani submitted his resignation from his position as Chairman and Board Member of DAMAC with immediate effect on June 8 due to the conflict of interest arising from his stake in Maple Invest and his participation in the offer.
The DAMAC Board of Directors will meet next Monday to evaluate the offer.
The issued and paid-in capital of DAMAC is 6,050 billion dirhams, divided into 6,050 billion shares, with a nominal value of 1 dirhams per share.
“DAMAC” shares closed at the close of trading yesterday, down 1.53% to 1.28 dirhams.
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