Mohamed Alabbar, the founder of Emaar Properties, said the developer increased its share in key markets of Egypt and India, capturing the strong increase in demand i.
Emaar Malls plan merger with Emaar Properties a credit negative: Moody s ANI | Updated: Mar 08, 2021 11:23 IST
Emaar Malls shareholders excluding Emaar Properties, which owns 84.6 per cent of Emaar Malls, will receive 0.51 Emaar Properties share for one Emaar Malls share, equating to a 7.1 per cent premium to Emaar Malls closing share price on March 1. The transaction will be credit negative for Emaar Malls because it will increase credit linkages between Emaar Malls and Emaar Properties, and because Emaar Malls will no longer be listed following the merger. It will therefore lose access to the equity market to raise capital.
Moody s said the proposed transaction contrasts with its expectation of Emaar Malls developing as a quasi real estate investment trust by virtue of expanding its shareholder base and thereby reducing the influence of its parent.