Deyaar Development, the real estate development and real estate services company, announced in a press release published on the Dubai Financial Market, that it has started implementing its capital restructuring plans, following its obtaining the necessary approvals from its shareholders and the Securities and Commodities Authority.
The shareholders approved, during the company's general assembly meeting recently, the proposal of the Board of Directors to reduce the company's capital from 5.78 billion dirhams to 4.55 billion dirhams.
The date of the capital reduction will be announced after the creditors ’announcement period, which lasts for 30 days, ends in accordance with the laws and regulations and after the completion of the formal procedures
In this context, Saeed Al-Qatami, CEO of Deyaar Development Company, said, “The capital restructuring plan proposed by the Board of Directors will allow Deyaar to write off all accumulated losses, most of which are more than ten years old, and enable us to improve the ratios. Finance and enhance the company's attractiveness to investors and future financing.
Al-Qatami added: “We expect this step to also have a positive impact on the share price and demand for it, in addition to enhancing the possibility of distributing profits to shareholders in the event of achieving the cumulative profits and in the event of the necessary cash surplus. This represents an additional positive step for the company, and we are confident that it will contribute In enhancing the durability 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