Emaar offers Dh15 a share to buy out Emaar Development and delist it
Emaar's board approved buying the nearly 19% it does not own in Emaar Development for Dh12 billion at Dh15 a share, and plans to delist the unit.
Emaar Properties' board approved an offer to buy the remaining stake of about 19% in Emaar Development for more than Dh12 billion, equivalent to $3.3 billion.
The company said the offer price is Dh15 a share, 19.4% above the last closing price, in a move aimed at persuading current shareholders to sell.
The offer covers more than 793.5 million shares and has a total value of more than Dh11.9 billion, according to the disclosed deal data.
Emaar Properties plans to delist Emaar Development from the Dubai Financial Market after the acquisition is completed, ending public trading in the subsidiary's shares.
What do these terms mean?
Acquisition: Buying a company or a large stake in its shares to take control and manage it.
Offer premium: The difference between the offer price and the share's latest market price, usually offered to persuade shareholders to sell.
Delisting: Removing a company's shares from public trading so they are no longer bought or sold on the exchange.
Tender offer: A formal offer by a buyer to shareholders to buy their shares at a set price within a set period.
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