Sajwani Says Goodbye To DAMAC, But Why?
The Emirati property development company, DAMAC Properties, is currently facing some changes. Billionaire businessman, Hussain Sajwani, the official chairman, founder, and 72% stake owner of the company, wants all or nothing. On June 9th, the Emirati businessman offered to buy 100% of the company, which is based in one of the most thriving cities in the world, Dubai. The moment he made this offer, he knew some things needed to change, so he resigned as chairman of the company.
The remaining 28% of the company’s stakes are owned by outsiders in DAMAC. Sajwani offered to buy 28% of the company for $599 million, which would be through his investment company, Maple Invest Co. Ltd, and the company made its pitch to buy the rest of DAMAC to the Board of Directors. However, to avoid conflict of interest, he knew it would be best if he quit as chairman of DAMAC.
When his resignation went through, the board appointed Farooq Arjomand as its new chairman, effective immediately. Arjomand is a professional banker, and is one of the founding members of the company, Amlak Finance. Experienced when it comes to financing, he is expected to make some solid changes, and to help DAMAC land on its feet. In addition, Ali Malallah Binjab was appointed as DAMAC’s vice chairman. Meanwhile, Al Tamimi was hired as the legal advisor, specifically to evaluate the offer. At the moment, there is a whole independent committee appointed, just to review and assess the offer made by Maple Invest Co. Ltd, and the details of this deal are still ongoing.
