Emaar weighs buyout of construction arm in deal worth up to $3 billion

what happened

Dubai developer Emaar Properties is considering a plan to acquire its construction subsidiary Emaar Development, Reuters reports, citing Bloomberg News. The potential transaction could be worth as much as $3 billion. Emaar Properties owns just over 79% of Emaar Development, which has a market capitalization of $13.68 billion according to LSEG data. Reuters could not immediately verify the Bloomberg report, and Emaar had not yet responded to a request for comment.

According to Bloomberg, citing people familiar with the matter, the company could announce a transaction within days. The board is due to meet this week to assess the proposal, and the company has sought legal and financial advice. No final decisions have been made.

Emaar, developer of the Burj Khalifa, has played a central role in turning Dubai into the Gulf's business and tourism hub. In June the company announced a nearly $55 billion urban district for 150,000 residents.

why it matters

For markets, the key points are the size of the possible deal relative to the subsidiary's market value and the terms offered to minority shareholders. So far this is a report about a plan under review, not a confirmed decision.

market impact

Emaar Development shares: a possible buyout of minority holders could draw investor interest in the stock

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