Dubai’s Damac shareholders to vote next month on Sajwani acquisition

Dubai-based property developer Damac's shareholders will meet on October 20 to vote on its billionaire founder's bid to buy out minority shareholders in exchange for $595 million and privatize the company, it said on Monday in a statement to the Dubai Financial Market where it is listed.

Hussein Sajwani said last week he would proceed with the acquisition through his British Virgin Islands-based investment vehicle, Maple Invest, following the regulatory approval for the offer from Securities and Commodities Authority. Maple Invest had said in a June 9 statement to the DFM that it plans to own a minimum of 90 per cent and up to 100 per cent of Damac. Sajwani currently owns 72 percent of the property company.

According to the statement to DFM on Monday, the agenda would include a resolution that would amend the articles of association to include that once the company acquires more than 90 percent of the shares, it may "submit an application to the Authority for approval to submit a mandatory offer to enforce the minority shareholders of the company to sell/swap all the shares held by them in favor of the acquirer..."