Emaar Properties plans to delist construction unit for $3.4bn

Emaar Properties announced Thursday plans to delist its construction arm Emaar Development from the Dubai stock exchange through a buyout offer valued at up to $3.4 billion.

The Dubai-based developer of the Burj Khalifa will offer 15 dirhams per share for the outstanding stake in Emaar Development, valuing the unit at $16.3 billion. The cash offer represents a 19.4% premium to Emaar Development’s closing price of 12.56 dirhams per share on November 2.

Emaar Properties currently owns just over 79% of Emaar Development, while its unit Emaar Property Holdings Limited holds an additional 1%.

The company said the deal would bring the UAE development business fully within the group, allowing it to be managed and funded under a single capital allocation framework.

The announcement follows a change of ownership earlier this year at Emaar Properties.

The company reported a 13% increase in revenue for the first nine months of the year, driven by construction progress and high occupancy rates at its shopping malls. The board also approved a special dividend worth approximately $1.2 billion.

JPMorgan serves as Emaar Properties’ financial adviser on the transaction, with Emirates NBD Capital acting as lead manager and FAB as co-lead manager.