Meraas has offered to acquire debt worth AED4.26bn and convert it into new DXB Entertainment shares, boosting its ownership to more than 90%
DXB Entertainment is to hire advisers to evaluate state-controlled Meraas Holding’s offer to acquire the Dubai theme park operator’s debt and take it private.
In a filing to Dubai Financial Market on Wednesday, the company said its board approved appointing KPMG and Shuaa Capital as financial advisers and Allen & Overy as legal adviser.
Last week, Meraas offered to acquire debt worth AED4.26 billion ($1.16 billion) and convert it into new DXB Entertainment shares, boosting its ownership to more than 90 percent.
Meraas said last week that it is offering shareholders a 33 percent discount to take theme park operator DXB Entertainments private, six years after raising money from equity investors to build the amusement hub.
DXBE was listed to capitalise on Dubai’s booming tourism sector in 2014, but it has struggled to hit targets for visitor numbers. Its troubles were exacerbated by lockdowns put in place to combat the coronavirus pandemic earlier this year.
The company hasn’t posted a profit since listing.
Meraas holds a 52 percent stake in DXB Entertainments, which still counts Qatar’s sovereign fund and Kuwait Investment Authority as other shareholders.
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