Al Mazaya Holding’s recent acquisition of First Dubai Real Estate Development KSC increased the Kuwaiti company’s assets to a staggering (KD115 million) AED1.4 billion, further strengthening its position among real estate companies listed on the Kuwait Stock Exchange.
“The post-merger scenario valued Al Mazaya’s capital at (KD29.5 milllion) AED371 million compared to (KD23.5 million) AED295 million before the acquisition. As a result the shareholders’ rights will increase by (KD37 million) AED465 million from (KD45 million) AED565 million to (KD82 million) AED1.03 billion, placing the company as the sixth largest among 28 real estate companies listed on the KSE as per capital, shareholders’ rights and total assets,” said Engr. Khalid Esbaitah, Managing Director and CEO of Al Mazaya Holding.
The acquisition also gave Al Mazaya direct ownership of Sky Gardens, a multi-million dirham project at the Dubai Financial Centre. Esbaitah hinted at Al Mazaya’s huge plans in investing further in the project, targeting (KD14 million) AED176 million in profits in the next few years. “This will ensure even better profits for the company’s shareholders, besides the growth of the revenues during the coming years,” stressed Esbaitah.
After the approval of Al Mazaya’s board directors, and authorizing its chairman Mr. Rashid Al Nafisi to buy 51 percent of The First Dubai Real Estate Development K. S. C. in addition to appointing GLOBAL as a financial consultant to seal the deal, Global has arranged the approval of almost 50 percent of The First Dubai Real Estate Development shareholders.
The agreement was signed by Mr. Rashid Al Nafisi representing Al Mazaya and Mrs. Maha Al Ghunaim the managing director and the vice chairman of First Dubai Real Estate Development.
The deal will be financed by raising up the capital of Al Mazaya by (600 Kuwaiti fils) AED7.5 for each share. The process will be accomplished by purchasing the shares of First Dubai Real Estate Development through issuing 1 share from Al Mazaya against 3 shares of First Dubai.
Mrs. Al Ghanaim expressed her delight over the acquisition which she believes is beneficial for the two companies in light of the high competition in the real estate sector.
“Currently, the competition is so high and the merger is seen as one of the methods to maximize the shareholders profits through the giant companies. In addition, Al Mazaya enjoys a high level of managerial skills and professionalism. These factors play a drastic role in this environment as expansion in the Gulf area represents a challenge for the companies to increase the revenues and overcoming the threats in the region,” she added.
The acquisition step means instant liquidity for the shareholders of First Dubai as the merger is seen a right tool to support the financial status and the operations.
“Global believes that there are great investment opportunities to achieve more revenues for the shareholders of First Dubai by merging the leading real estate companies who have a great record of success inside Kuwait and abroad. In the meantime, Global will keep the doors open for the shareholders to participate in this deal by selling the shares of First Dubai against subscribing in Al Mazaya’s capital (bartering system), where no fees will be incurred through such transactions,” ended Al Ghanaim.
