DUBAI: The planned merger between Emaar Malls and Emaar Properties has been approved by the Securities and Commodities Authority, the companies announced on Monday.
The move comes as both companies aim to increase profitability amid a challenging real estate and retail environments brought about by COVID-19.
It will ensure both are “strategically positioned to capture opportunities in the marketplace and drive shareholder value,” the statement indicated.
Under the deal, existing businesses of Emaar Mall will be reconstituted in a wholly owned subsidiary of Emaar Properties.
Shareholders of Emaar Malls will receive 0.51 Emaar Properties shares for every one share. This represents a premium of 7.1 per cent to the closing price of Emaar Malls on 1 March 2021, the last trading day prior to the merger announcement, and a premium of 11.2 per cent to the market implied exchange ratio based on volume weighted average prices over the last one month to 1 March 2020.
This represents a premium of 3.5 per cent to the closing price of Emaar Malls on 1 September 2021 and a premium of 4.4 per cent to the market implied exchange ratio based on volume weighted average prices over the last one month to 1 September 2021, a joint statement said.
The merger is now subject to a number of conditions, including the approval by the shareholders of both Emaar Properties and Emaar Malls.