Dubai: A joint venture of Dubai-based Emaar Properties and MGF Group offered to buy 76.08% of Singapore retailer RSH Ltd on Sunday at S$1.05 (Rs30.54) per share.
The bid values RSH, the rest of which is owned by Mohamed Ali Alabbar, chairman of both Emaar and RSH, at S$370 million, the two companies said in a statement.
Emaar, the largest Arab property developer by market value, and MGF aim to buy the majority stake through their joint venture Golden Ace Pte Ltd, they said.
RSH shares last traded on 28 February at S$1.20, after rallying 26.3% in two trading days.
Alabbar who has opted not to accept the offer in respect of his shares, the statement said.
RSH has 430 stores in 12 countries selling sporting goods and fashion products. It has exclusive retailing rights to European brands, including Zara and Massimo Dutti, in several markets.
“The economies of India, Middle East and Southeast Asia are booming, and in line with the economic growth, the retail sector presents substantial growth opportunities,” Emaar Vice-Chairman Hussain al-Qemzi said in the statement.
Emaar, which bought US homebuilder John Laing Homes for $1.05 billion in June, is diversifying into shopping malls, hotels, health care and education. Outside Dubai, the company has projects worth more than $60 billion in 14 countries.
Emaar owns 30% of Golden Ace through a unit of a wholly owned subsidiary. MGF, with businesses from auto dealerships to real estate, holds 70% of Golden Ace through a wholly owned subsidiary.
Golden Ace will submit its offer in the next three weeks, the companies said.
DBS Bank Ltd is the deal’s financial adviser.