Company completes phase-1 of the deal with Omniyat Properties
Dubai, UAE; 23rd
March, 2017 – Drake
& Scull International PJSC (“DSI” or the “Company”), a regional engineering
and services leader, signed today the sale deal of its ownership share in the
ONE PALM development in Dubai.
The ONE PALM development, a joint venture project between Omniyat
Properties and DSI, was launched in 2014. The flagship project is located on
the left trunk of Palm Jumeirah and is considered as one of the most iconic and
upcoming residential developments in Dubai.
Omniyat Properties, the developer of the project has agreed
to purchase DSI’s stake in the project. The joint venture partners concurred to
a provisional settlement plan comprising of consecutive phases that is scheduled
to be completed in 2017 which will generate liquidity of over AED 300 million
for DSI. The first phase of the settlement plan is approved and the proceeds of
the payment will be remitted in March 2017. Progress updates on the residual phases will
be further announced by the joint venture partners upon finalization throughout
the fiscal year.
This transaction marks an important milestone in the DSI turnaround
and capital restructuring plan that was initiated in Q4 2016. The company is
progressing steadily with its divestment program and will continue to pursue the
disposal and monetization of its non-core assets and non-performing
subsidiaries to generate cash for the business.
The company announced earlier in February 2017 several
strategic measures to stabilize the business in preparation for a new phase of
financial & operational recovery.
The DSI Annual General Meeting of the shareholders is
scheduled to convene during the month of April 2017 to approve these measures. The
proposed date of the meeting will be announced by the company by end of March