Saturday, June 27, 2009

Emaar, Dubai Holdings under consolidation talks

As per the statement issued by the Dubai Government Media Office, four large development firms in Dubai - Emaar Properties PJSC, Sama Dubai LLC, Dubai Properties LLC and Tatweer LLC, have come together to hold one of the larges banks in Dubai, and have begun discussions to join together and form a larger entity, intended to rise up to the current challenges and to transform Dubai into a global city.

The proposed consolidation, when implemented, would create the biggest developer ever, in the MENA and Asian regions.

Dubai Properties, Sama Dubai and Tatweer are a part of Dubai Holdings, the investment arm of Dubai Government, while Emaar Properties, is on the verge of completing Burj Dubai, the world's tallest tower, 32.5 percent of which, is owned by the Dubai Government. Emaar also finds its listing in Dubai Financial Market.

The proposed consolidation of these leading real estate units will mark the beginning of a new chapter in the annals of global real estate, apart from building on the remarkable achievements in Dubai during the past thirty years.

The Royal Bank of Scotland PLC is the Advisor of Emaar Properties, while Merrill Lynch International represents the interests of Dubai Holdings.

The statement revealed that the firms are almost finalizing the proposed consolidation, including valuation of various entities, and assessment of potential transaction structures. Discussions are also on with the respective regulatory authorities, the statement said.

The Chairman of Dubai Holdings, Mohammad Al Gergawi, mentioned that consolidating these companies with Emaar is a natural progression towards evolution of Dubai real estate landscape, offering benefits to all stakeholders.

By clubbing forces, the largest combined entity will be given an unparalleled platform to maximize the opportunities in local and international markets. The combined entity has a clear strategy to better the positioning of Dubai as a world-leading hub in property development and management.

The Chairman of Emaar, Mohammad Ali Al Abbar, mentioned that there could be exceptional synergies between Dubai Holdings and Emaar's major real estate businesses. These comprehensive discussions are driven by shared vision regarding the consolidation of our respective visible success stories till date and the aim by the companies for creation of a world-class group, ideally positioned to help and support the current development of Dubai as a world-leading hub.

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