Emaar Properties and Emaar Malls have said the capital market regulator, Securities & Commodities Authority, has given the go-ahead for the proposed merger of the two companies.
As per the proposal, the existing business of Emaar Malls will be reconstituted in a wholly-owned subsidiary of Emaar Properties and will continue to develop and hold a portfolio of premium shopping malls and retail assets.
Under the share swap deal, Emaar Malls shareholders, excluding Emaar Properties, would receive 0.51 Emaar Properties share for every Emaar Malls 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 2021, the statement said.
This also 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, it added.
The proposed merger still requires shareholder approval.
