Hussain Ali Habib Sajwani, the billionaire owner of DAMAC Properties Dubai Co PJSC, has offered to take the luxury real estate developer private by spending as much as AED2.185 billion ($595 million).
Sajwani-controlled Maple Invest Co Ltd made an offer Wednesday to increase its stake in DAMAC to at least 90% and up to 100% in an effort to delist the company from the Dubai Financial Market stock exchange.
Maple currently controls a 72.215% stake in the real estate company. It has offered AED1.3 per share to buy DAMAC shares, it said in a filing on the DFM. Shares of DAMAC fell 1.5% Wednesday to trade around AED1.28 apiece.
In order to avoid any conflict of interest, Sajwani also resigned as the chairman of DAMAC’s board of directors.
Sajwani had been planning to take DAMAC private since July 2020, when it was reported that he had been in talks with banks to finance the deal.
The bid to take the company private has been prompted by a precipitous fall in its share price owing to a downturn in the real estate market in Dubai and Saudi Arabia, where the company operates. The company’s share price had fallen to as low as AED0.743 last year but has since rebounded more than 70%.
In 2020 the company recorded losses to the tune of $297 million. In February, Sajwani had said that recovery, following the rout in the wake of the coronavirus pandemic, could be in sight only by 2023.