DUBAI real estate developer Emaar Properties is considering a plan to acquire its construction arm Emaar Development in a potential deal worth as much as US$3 billion, Bloomberg News reported on Tuesday.
Emaar Properties, which owns just over 79 per cent of Emaar Development, could announce plans for a transaction within days, Bloomberg reported, citing people familiar with the matter.
Reuters could not immediately verify the Bloomberg report. Emaar did not immediately respond to a Reuters request for comment.
Emaar Development has a market capitalisation of US$13.68 billion, according to LSEG data.
Emaar Properties is due to hold a board meeting this week to assess the proposal and has sought legal and financial advice, the Bloomberg report said, adding that deliberations are ongoing and no final decisions have been made.
Emaar, the developer of the Burj Khalifa – the world’s tallest building – has played a central role in the emirate becoming the Gulf’s business and tourism hub, including in the years following the Covid-19 pandemic when the property market boomed.
In June, Emaar announced plans for a nearly US$55 billion urban district in Dubai that would house 150,000 residents, wagering the emirate’s property market can absorb the shock of regional conflict.