Emaar sold the fashion brand Namshi to Noon for $335.2 million

The equity value will be paid to the developer in cash.

The largest publicly traded developer in Dubai, Emaar, will transfer control of Namshi to e-commerce firm Noon for $335.2 million.

The sale of Namshi, the e-commerce division owned by Emaar Malls, to Noon has been given preliminary permission by the board of directors of Noon. According to a statement released by the firm late on Friday to Dubai Financial Market.

In 2017, Rocket Internet’s Global Fashion Group sold Emaar a 51% share in Namshi for $151 million. Later on, it paid $129.5m for the remaining interest in the online apparel business.

As stated in the release by Ahmad Al Matrooshi, a member of the Emaar board, “further information will be disclosed once the approvals of Noon’s board are duly acquired.”

Noting that the concerned board member did not participate in or cast a vote at the meeting. It is said that the intended divestment is with a company-related entity.

Online sales have increased significantly in the UAE. The Covid-19 pandemic has made this trend more rapid.

Dubai Ecommerce Report

E-commerce retail business in UAE reached a record $3.9b in 2020, expanding 53% yearly. Making up 8% of the total retail market.

Moreover, the number of e-commerce licenses the emirate awarded increased by 63% in the first half of 2021, as per the Department of Economic Development.

According to consulting firm AT Kearney, GCC e-commerce revenues increased by over five times from $5 billion in 2015 to $24 billion last year. They expect this to continue to grow as a result of a long-term shift in customer behavior.

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The DFM had suspended trading on Emaar shares on Friday morning until it received clarifications from the company about the results of its board of directors meeting.

The company first bought a 51% stake in Namshi for $151m in 2017 from Rocket Internet’s Global Fashion Group. It later acquired the remaining stake in the online fashion retailer for $129.5m.

Emaar Malls’ full acquisition of Namshi came two years after it made an 11th-hour bid to acquire rival platform Souq.com. Which was eventually sold to Amazon for $580m in 2017.

Mr Alabbar launched the $1bn e-commerce platform, Noon, with the help of Saudi Arabia’s sovereign wealth fund in 2017.

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