Diyar Development Company has announced the start of the implementation of capital restructuring, after obtaining the necessary approvals from shareholders and the Securities and Commodities Authority.
According to the statement, the shareholders agreed, during the company's recent general assembly meeting, to the proposal of the Board of Directors to reduce the company’s capital from 5.78 billion dirhams to 4.55 billion dirhams, and to authorize the CEO and / or any of the members of the board of directors to take the necessary steps and procedures to enable the company to complete Capital restructuring process.
The date of the capital reduction will be announced after the creditors ’announcement period, which lasts for 30 days, has ended, according to the laws and regulations, and after the completion of formal procedures.
In this context, Saeed Al Qatami, CEO of Deyaar Development Company, said: The capital restructuring plan proposed by the Board of Directors would allow Deyaar to write off all accumulated losses, most of which date back more than ten years, and enable us to improve financial ratios and enhance the attractiveness of The company for investors and future financing.
Al-Qatami added: We expect this step to return also with a positive impact on the share price and demand for it, in addition to enhancing the possibility of distributing dividends to shareholders in the event of achieving the cumulative profits and in the event of the necessary cash surplus. This is an additional positive step for the company, and we are confident that it will contribute to enhancing the robustness of our business.
The capital restructuring plan includes the cancellation of 21.3% of the company’s shares, and this will be done in accordance with the Commercial Companies Law, the Company’s articles of association, the regulations and decisions issued by the Securities and Commodities Authority, and all relevant laws issued by the relevant regulatory bodies.
Deyaar Development expects that the restructuring of the capital and the implementation of the reduction in the financial market will be completed at the end of May of this year.
Diyar Development is a company listed on the Dubai Financial Market and Dubai Islamic Bank holds the majority stake. It is one of the real estate development companies in Dubai and has real estate units spread in a number of prominent areas and distinct urban expansion areas in the emirate.
Deyaar Development has been able throughout its long career to provide a comprehensive portfolio of commercial and residential properties that enjoy the highest levels of service and quality.
