The possible delisting of Dubai-based Damac Real Estate Development by its key shareholder is credit neutral, according to S&P Global Ratings.
Therefore, we expect Damac's credit metrics will be unchanged, in line with the 'B' rating and negative outlook.
The offer was made through Sajwani's personal investment vehicle Maple Invest Company. Upon reaching 90% plus one share of interest, Maple Invest can squeeze out shareholders who have not accepted the offer, to ultimately reach 100% ownership.
The offer, made at AED1.3 per share, values Damac's minority interest at about AED2.2 billion, said S&P Global Ratings.
A change in Damac's financial policy, dividend distribution, or governance practices would have an impact on the rating, it added.
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