Statement from Emaar Properties

Published June 28th, 2009 - 05:09 GMT

Statement from Emaar Properties

“Emaar Properties PJSC (Emaar) and Dubai Holdings LLC (Dubai Holdings) announced that they are in advanced discussions with regards to an intended combination of the following real estate businesses: Emaar, Dubai Properties LLC, Sama Dubai LLC and Tatweer LLC.
The proposed consolidation comes within the resolute dedication to transform Dubai into a global city since construction and development is a primary engine of growth. Dubai will thus rise up to the current challenges with hallmark agility and responsiveness. The consolidation of these leading real estate entities will not only build on the remarkable achievements in Dubai during the last three decades, but more importantly, marks the start of a new chapter in the annals of real estate globally.
HE Mohammed Al-Gergawi, Chairman of Dubai Holdings, said “Consolidating these three companies with Emaar is a natural progression in the evolution of the Dubai real estate landscape, providing benefits to all stakeholders. By joining forces, we will give the larger combined entity an unparalleled platform to optimize opportunities in its domestic and international markets. The combined entity has a clear and concise strategy, better positioning Dubai as a world-leading hub in real estate development and management.”
HE Mohamed Alabbar, Chairman of Emaar, said “We believe that there could be exceptional synergies between Emaar and Dubai Holdings’ key real estate businesses. These comprehensive discussions are driven by a shared vision regarding the consolidation of our respective visible success stories to date and the creation of a world-class group which would be ideally positioned to dynamically help shape and support the ongoing development of Dubai as a world-leading hub. We look forward to working with Dubai Holdings with a view to completing these discussions soon and ensuring value accretion to our existing shareholders.”
Emaar and Dubai Holdings along with the assistance of their financial advisers, the Royal Bank of Scotland PLC and Merrill Lynch International respectively, are in the process of finalizing a thorough assessment of the merits of this proposed consolidation, including the valuation of the various entities as well as the assessment of the potential transaction structures. Discussions are also being held with relevant regulatory authorities.
As the discussions progress, timely updates will be provided to the market. It is currently estimated that the process of consolidation will take approximately 4 months to be completed, which will include due diligence of the entities, detailed valuation exercise, completion of legal documentation, agreement with regulatory authorities in respect of the structure and the process, and shareholders approval. A tentative timeline for each of the aforementioned steps is given in the attached appendix. There are detailed work streams for each of the above milestones. The overall aforementioned timelines are current estimates and are subject to change based on progress of the various milestones.”


About Emaar Properties PJSC:
Emaar Properties PJSC, listed on the Dubai Financial Market, is a global property developer with a significant presence in 36 markets worldwide. Besides building residential and commercial properties, the company also has proven competencies in shopping malls & retail, hospitality & leisure, education, healthcare and finanacial services sectors.

Emaar is developing Burj Dubai, the world’s tallest building and free-standing structure and has opened The Dubai Mall, the world’s largest shopping and entertainment destination. In Saudi Arabia, Emaar is developing King Abdullah Economic City, the region’s largest private sector-led project, featuring a Sea Port, Central Business District, Industrial Zone, Educational Zone, Residential Communities and Resort District.

Emaar has joined hands with Giorgio Armani to strengthen its presence in hospitality. The company is also opening educational institutions and healthcare centers in South Asia, Middle East and North Africa and the Subcontinent.

Emaar holds 30 per cent equity in Dubai Bank, focused on retail and commercial banking. Emaar is also the largest shareholder in Amlak Finance, UAE’s leading Islamic home financing company. For more information, visit www.emaar.com

About Dubai Holdings LLC:
Dubai Holdings was launched in October 2004 to consolidate the various large-scale infrastructure and investment projects in Dubai, as well as to identify opportunities to develop future major projects that will benefit the UAE and the region.

The company has been created with the goal of providing a better future for all through the range of life-improving industries it is involved in. each Dubai Holding operating company focuses on key areas which dynamically support the development of Dubai as a world-leading hub for commerce, leisure and finance.
Under its slogan: “For the good of tomorrow” Dubai Holding has created strong presence in 13 various industries by developing pioneering initiatives spanning numerous sectors including finance, real estate, technology, hospitality, energy, healthcare aerospace, communication, industrial manufacturing, biotechnology, education, leisure and entertainment and telecommunications.

Dubai Holding’s seven member companies are: Jumeirah Group, TECOM Investments, Dubai Group, Dubai Properties Group, Tatweer, Sama Dubai and Dubai International Capital. Through these companies, Dubai Holding has a foothold in four continents with more than 250 companies and around 16,000 employees.

The seven members have initiated, launched and mange companies in different sectors. These companies include: Jumeirah Living, Jumeirah Essex House, Wild Wadi, Dubai Internet City, Dubai Media City, Dubai Knowledge Village, Dubai Investment Group, Noor Islamic Bank, Borse Dubai, Dubai Properties, Injaz, Salwan Properties Management, Dubai Healthcare City, Universal Studios Dubailand, the Tiger Woods Dubai, Dubai Towers, Salam resort brand, Dubai International Capital Global Equity, and Dubai International Capital Private Equity. For more information, please visit www.dubaiholding.com


Appendix to statement

Tentative timelines for the completion of the consolidation process of Emaar Properties PJSC, Dubai Properties LLC, Sama Dubai LLC
and Tatweer LLC

Legal and Financial Due Diligence    September 2009

Finalisation of the Valuation exercise for the entities  August 2009

Completion of the legal documentation    September 2009

Approval of the Regulatory Authorities    October 2009

Approval of Emaar’s Shareholders    October 2009


The aforementioned timelines are current estimates and are subject to change based on progress of various milestones as set out above.


 


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