UAE’s Emaar Malls Management, a wholly-owned subsidiary of Emaar Properties, and Noon AD Holdings announced Thursday that they have entered into definitive documentation for Emaar Malls to sell the entire share capital of Namshi Holding Limited to Noon for a total cash consideration of AED1.23 billion ($335.2 million).
According to a statement of which Asharq Al-Awsat obtained a copy, the consideration represents an excess of AED127 million on the total investment by Emaar Malls in Namshi including purchase consideration and subsequent investment.
The transaction is in line with Emaar’s strategy to divest assets that are not core to its primary business so as to create and sustain value for its shareholders.
Proceeds from the transaction will be invested by Emaar into its core real estate development business in line with Emaar’s strategy to redeploy capital across the group with a focus on investing in businesses that are of core strategic value.
The transaction is expected to close in the next six months, subject to meeting various conditions, including inter alia, final regulatory approvals and approval from Emaar’s shareholders.
“We are proud to have been part of Namshi’s journey and are confident that Namshi will reach greater heights and success under Noon’s ownership,” said a spokesperson for Emaar, the parent company of Emaar Malls Management.
“The capital generated through the divestment of Namshi, a non-core asset for Emaar, would be deployed in core focus areas of Emaar to generate shareholder value. Further, the sale of Namshi at a premium to its purchase price generates additional value for Emaar shareholders.”
A spokesperson for Noon said: “Namshi’s success and ambition are well-documented. The brand has evolved from a start-up to a beloved one, competing for local e-commerce with much larger international fashion and beauty players.”
He pointed out that Namshi has kept its lead and much of its story is similar to Noon’s, adding that Noon is thrilled to be able to assist it in taking its growth and success to the next level.