11 December 2009, 01:24am IST
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DUBAI/NEW DELHI: In the backdrop of the debt crisis in the region,
Gulf real estate firm Emaar Properties has called off its proposed merger with
state-owned Dubai Holding, citing the deal is not "economically viable".
The move comes in the midst of realty firm Emaar-MGF, the Dubai entity's
JV with domestic company MGF Development, preparing an initial public
offering for over Rs 3,800 crore.
Emaar Properties has said the decision to cancel the proposed merger
with Dubai Holding was taken after intensive feasibility studies that
were undertaken by a group of international experts and economic analysts.
In a statement late Wednesday, Emaar noted the results of "these studies
proved that the proposed consolidation (with Dubai Holding entities)
discussed earlier was not economically viable in the current economic climate".
Last month, Dubai government shocked world markets after the government-owned
conglomerate Dubai World sought six more months to repay debts worth $59 billion.
The announcement not only dented investors' confidence but also sparked
fears of another financial turmoil. Emaar Properties is the developer of
the world's tallest building Burj Dubai
Source:PTI
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