DUBAI: Abu Dhabi developers Eshraq Properties and Reem Investments on Wednesday said they were in advanced stages of merger talks to create the second-largest listed developer in the emirate.
The deal would involve Reem Investments’ subscription to a new share issuance from Eshraq, which in turn will acquire Reem Investments’ entire business and all of its assets, the two property firms said in a joint statement.
The transaction remains subject to a number of conditions, including the final agreement of specific deal terms including the pricing, as well as obtaining the required regulatory approvals, Eshraq also said in a disclosure to the Abu Dhabi stock exchange.
“The potential transaction is expected to be beneficial to the shareholders of both companies resulting in synergies derived from integrating their operational and financial resources and as well as combining their management experience and expertise,” the boards of the two companies said in the statement.
Eshraq is being advised by Shuaa Capital and Reem Investments by First Abu Dhabi Bank in the merger talks. They did not disclose when the deal would be finalized.
Eshraq Properties early this month its first profit at Dh636,000 in the second-quarter, compared with a Dh101.4-million loss in the same period of last year. The company also had asset base of Dh1.462 billion during the period ended June.
Unlisted Reem Investments meanwhile had assets worth Dh5.3 billion at the end of last year and a net profit of Dh216 million, an increase of 2 percent over 2015, according to financial figures posted in its website.
Abu Dhabi developers Eshraq Properties and Reem Investments in advanced merger talks
Abu Dhabi developers Eshraq Properties and Reem Investments in advanced merger talks
