Sajwani’s Maple submits offer to buy 100% of Damac

Maple Invest, a vehicle fully owned by Damac Properties’ founder Hussain Sajwani, has submitted an offer to buy 100 per cent of the issued and paid-up ordinary share capital of the Dubai-based developer.

This comes after the company’s board unanimously recommended that its minority shareholders should accept Mr Sajwani’s offer to take the company private.

Damac shareholders, excluding Maple and its associated groups, will be entitled to receive Dh1.40 ($0.38) in cash in exchange for each Damac share they hold.

Arqaam Capital is the receiving agent while Freshfields Bruckhaus Deringer are Maple’s legal advisers.

To participate, Maple asked shareholders to sign an acceptance form that will be distributed electronically. The form, which is also available on Damac’s investor relations website, should be returned by 2pm on November 25, Maple Invest said on Thursday.

Mr Sajwani, who owns 72 per cent of the developer, said in June that he would buy the remaining shares for Dh1.30 each, or $595 million in total.

He resigned from the board as chairman in June to avoid conflict of interest.

Damac subsequently appointed vice chairman Farooq Arjomand as his replacement while Ali Binjab was appointed as vice chairman.

Mr Sajwani relaunched a bid in September to take Damac Properties private through Maple Invest, the British Virgin Islands company he fully owns, after securing regulatory approval to buy shares in the developer.

Maple Invest said in June that it plans to own 90 per cent to 100 per cent of the developer.

Damac has recorded successive quarterly losses.

However, the company narrowed those in the second quarter this year, boosted by a recovery in the UAE property sector.