Damac Properties, the Dubai developer firm, has declared the suspension of its stock trading on Dubai Financial Markets (DFM) from Tuesday.
This will set the stage for Hussein Sajwani, Damac’s founder, and entities/individuals related to him owning 100 percent of the company. Last year, Sajwani followed up a plan that had been there for some time to de-list Damac and set a new course for the developer back fully in private mode.
Through his investment company Maple, Sajwani then set in motion a process to buy up all shares that were not held by him, his family, or associated enterprises. An initial offer price was renewed after the matter was raised before the UAE stock market regulator, SCA (Securities and Commodities Authority).
Today (February 14), the re-privatization of Damac has reached its final moments. “Damac shareholders are notified that the notice period for the mandatory acquisition ended on 13 February,” Damac said. “As of today’s date, neither DAMAC nor Maple has received any objection to the mandatory acquisition announced on 13 December 2021.”
“Damac will instruct the DFM to suspend trading of its shares with effect from Tuesday and all remaining Damac shares (not already held by Maple) will be re-registered in the name of Maple in Damac’s share register by February 20. Maple will settle any cash consideration due to remaining Damac shareholders through the relevant payment method as registered with Dubai CSD at DFM by these shareholders.”
What next for Damac and Sajwani?
Now that Damac is once again fully his, will Sajwani go back to being the Chairman? This was a role he stepped down from as the Board of Directors formally received the Maple takeover offer. Chances are that the Board will be reconstituted, according to market sources.
Damac will be announcing its full-year 2021 results and all the pointers are to a set of numbers that would please Sajwani. Recently, the company had come to market with its ‘Damac Lagoons’ project, more of a niche venture to test out the off-plan waters.
These changes were made in light of Damac’s status reversion to being a fully-owned private enterprise.
