DXB board urges shareholders to endorse Meraas offer to buy 100 pc shares

BBN Report

Company reports AED2.66 bn loss for FY20

DUBAI/February 10-2021: DXB Entertainment’s board of directors has on February 9 requested the shareholders to accept the Offer from Meraas to buy 100 per cent of the company’s paid-up shares.

The board has requested the shareholders to vote in favour of the general assembly resolutions required to implement the Offer.

Meantime, DXB Entertainment has reported a huge loss of AED2.66 billion for the financial year 2020 (FY20) against a loss of AED855 million in the earlier year.

In fact, more than 60 per cent of the FY20 loss, at AED1.60 billion, has come the fourth quarter operations.

On December 20, 2020, the Board of Directors of DXBE received a conditional cash offer from Meraas Leisure and Entertainment to acquire 100 per cent of the issued and paid-up ordinary shares of DXBE.

“The board having evaluated the inputs received from its independent financial and legal advisors as to the terms of the Offer, in conjunction with the DXBE’s current cash position and liabilities, and near-term general economic conditions,  has viewed the terms of the Offer to be fair and reasonable,” a statement from DXB said.

Therefore, the Board has unanimously recommended to DXBE’s shareholders to accept the Offer from Meraas, attend the general assembly meeting on March 9, 2021 and vote in favour of the resolutions required to implement the Offer.

Hard-pressed for funds

DXB Entertainment believes it is in need of new sources of funds, without which the current available liquidity is likely to be exhausted during the second quarter of the current year itself.

Remi Ishak (seen in the picture), Acting CEO and CFO of DXB Entertainments, noted that the year 2020 was a tremendously challenging year with major disruptions in travel and tourism as a consequence of the Covid-19 pandemic.

“The closure of the destination for a period of approximately six months had a significant impact on our operational and financial performance. We implemented our contingency plans and realised further cost savings during the year which partially mitigated the decline in revenues,”Ishak said.

 

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