Emaar Malls offered $ 800 million

Mar

27

2017

to buy on Souq.com

The deal threatens to ignite a bidding war with Amazon, which is seeking to buy it
Google + LinkedIn Facebook Twitter
Emaar Malls, which operates shopping malls in the Middle East, has made an offer worth $ 800 million to buy the region’s largest retail stores, sparking a potential bidding war with Amazon, which aims to enter Arab markets by buying Souq.com .

Emaar Malls, a Dubai-based company listed on the Dubai bourse, said in a statement on Monday that the company’s shareholders had not yet accepted the offer, which is rumored to have been rejected.

Reuters reported last week that Amazon had agreed in principle to buy the Samsung, which was founded 12 years ago by Ronaldo Meshaor, an American entrepreneur born in Aleppo, Syria, and based in Dubai, United Arab Emirates.

Reuters quoted a well-informed source as saying that Emaar Mollas offered more than Amazon’s $ 580 million offer. While the Financial Times quoted two people familiar with the deal as saying Amazon had suffered between $ 650 million and $ 750 million.

According to the Reuters source, it will have to cancel an exclusive agreement with Amazon if it agrees to offer Emaar Malls at this stage. He added that the Emaar Malls offer includes a payment of $ 500 million in advance and a guaranteed internal rate of return of 15% to the shareholders of Souq.com.

The offer to Souk.com is not the first step for UAE billionaire Mohammed Alabbar, who has made a name through his role as chairman of Emaar Properties, which is behind the construction of the world’s tallest tower in e-commerce. Last year, he announced the raising of $ 1 billion from regional investors to create the Nun.com e-commerce platform.

Before announcing the Nun.com platform, Alabbar met days with Amazon founder Jeff Bezos in Dubai, sparking speculation about a plan to announce a partnership between Amazon and Noon.com in the region. Reuters quoted Emaar Mollas as independent of Nun.com.

Emaar Malls is the operator of the Dubai Mall, which accounts for about 50 per cent of the UAE’s luxury goods spending in the emirate and is one of the largest malls in the Middle East.

Alabbar also made other investments in new technology and e-commerce by buying shares in Aramex Regional Logistics last year and is setting up a new fashion store in the Middle East with the Yoks Net-Porter after buying a 4% Italian retail for 100 million euros last April.

Alabbar said he planned to use Aramex and Kuwaita, the American food company he bought last year, to deliver NON.com products. He also plans to develop an instant messaging service for the Middle East similar to Facebook’s Wattsab service.

About 78% of the e-commerce market in the Middle East and North Africa is located in Dubai, United Arab Emirates.

About 78% of the e-commerce market in the Middle East and North Africa is located in Dubai, United Arab Emirates.

Established in 2005, it offers 8.4 million products on its website and has recently started selling books and vegetables. For comparison, Amazon provides more than 40 million products. The company was established as an auction site and was then linked to the Maktoob portal, but it became an e-commerce platform in 2011.

Viewing:-170

In: News & Events Asked By: [17245 Red Star Level]

Answer this Question

You must be Logged In to post an Answer.

Not a member yet? Sign Up Now »