Amlak’s shareholders agree to Dh2.1 billion convertible issue

The EGM approval was a key milestone in the implementation process of the restructuring package which had been approved earlier by Amlak’s financiers in August.

Dubai: Sultan bin Saeed Al Mansouri, UAE Minister of Economy and the Chairman of the Committee to Assess the Condition of some Public Shareholding Companies of the UAE, has announced that the shareholders of Amlak Finance held an extraordinary general meeting on Sunday to approve an increase in share capital of the company and agreed to the issuance of an Islamic financial instrument convertible into shares up to a maximum of Dh2.1 billion.

The EGM approval was a key milestone in the implementation process of the restructuring package which had been approved earlier by Amlak’s financiers in August. Al Mansouri stated: “We are very pleased that restructuring proposal has been accepted by the company’s shareholders at the EGM. This brings the restructuring close to completion for Amlak, and after finalisation of the restructuring documentation, the company will be taking the necessary regulatory steps to have its shares re-admitted for trading on the DFM in 2015.”

Arif Alharmi, CEO of Amlak, said: “We would like to thank all Amlak shareholders for their unwavering support over this period and for their acceptance of the restructuring package at the EGM. I would also like to thank the UAE Government, the committee and our financiers whom have closely partnered with us throughout this process. Amlak has taken a number of strategic measures over the last few years to focus on its core property financing operations and reduce its exposure to real estate assets and we continue to work hard with all our stakeholders in returning to market.”

Due to regulatory requirements for re-admission of share trading, shareholders’ approval at the AGM will also be required as part of this formal process. The AGM is provisionally scheduled to take place in the first quarter of 2015.