Dubai’s top brand Emaar is ensuring its decision to sell its online fashion platform Namshi to e-commerce company Noon for $335.2 million passes seamlessly.

The real estate developer is currently sorting out regulatory queries as Dubai Financial Market (DFM) has suspended trading on the company's shares until clarifications are received about the results of its board of directors meeting.

On Saturday evening, the real estate developer issued a statement signed by Ahmad Thani Rashed Al Matrooshi, board member at Emaar, stating, “The company would like to announce that its board of directors will convene by circulation on August 22 to take a resolution in respect of the General Assembly’s date. The invitation and agenda of the assembly will be disclosed and published within the regulatory timelines, which is 21 days before the General Assembly”.

On Friday, Emaar stated in its filing to DFM that “the company would like to announce that its board of directors has in principle approved the sale of Namshi to Noon (subject to the approval of Noon board of directors). The planned divestment is with a related party to the company noting the concerned board member did not participate or vote in the meeting. The price shall be a cash consideration of $335.2 million noting that the price is within the range which has been defined by an independent valuer approved by the Securities & Commodities Authority. The above cash consideration is the equity value of Namshi which is equivalent to $350 million of Enterprise Value of the company. This is adjusted for the debt at the company level and the normalised working capital required for the company. Emaar will receive the equity value as the cash consideration for the sale. Detailed information will be disclosed once the approvals of Noon board is received formally”.

Vijay Valecha, chief investment officer at Century Financial, said: “Emaar has been in the news in the last few weeks and for all good reasons. The sale of Emaar stake of Namshi to Noon is an extremely positive sign for the company. We have seen in the past many companies diversifying into multiple horizontals without consolidation. Emaar is taking all the right steps to keep its core business at record sales and the stock prices are at a superb upward trend. The stock closed trading at Dh5.91 on Thursday and was up by more than 10 per cent on the Namshi sale news, as this will largely improve the company’s liquidity and debt ratios. The positive notes from Emaar could possibly take the stock above the the Dh7 mark, a price which has not been seen since 2017.”

A recent report from global ecommerce accelerator Pattern reported that online shoppers in the UAE will spend more time online for shopping. The report was carried out to understand online buyer behaviour, including how they are using marketplaces such as Amazon and Noon.The results back up predictions of the growth in the UAE’s ecommerce market size to $17 billion in 2025, according to Kearney. Overall, 74 per cent of online shoppers polled said they would spend more online shopping in 2022. Around 19 per cent expected to spend the same as in 2021, and just 6 per cent expected to spend less. The findings are included in Pattern’s UAE Shopper Report 2022. The research also shows that marketplace Amazon and Noon have fast become favourites among the UAE’s online shoppers. More respondents expected to purchase online this year from Amazon or Noon than other online retailers for every major product category, including fashion, consumer electronics, home and kitchen and beauty.

Anurag Chaturvedi, Chairman ICAI Dubai and CEO of Andersen UAE, said: “The Namshi and Noon transaction brings effeciencies across both the ends and fosters significant positive impact on Noon to become largest ecommerce and market place in region by adding Namshi’s credibility for fashion which is grown over years in multiple of Ebita. While Emaar being the leading real estate conglomerate will reap in liquidity to boost its diversification in real estate portfolio. This moves brings positive liquidity to Emaar to invest in the growth driven GDP of UAE with focus on real estate. Considering global economic turbulence, UAE real estate on spotlight and diversification in this area will generate positive bottom line for Emaar and its shareholders. Ecommerce is specialised business and it need significant investments to drive the growth and increase market base, through this transaction Noon can leverage Namashi offerings to increase its market share.” 

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