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Mazaya receives merger offer from Al Bandari

Satyendra Pathak
Mazaya Real Estate Development (Mazaya Qatar) on Thursday announced that it has received a merger offer from Al Bandari, one of the leading real estate companies in Qatar.
In a statement issued on the website of Qatar Stock Exchange, Mazaya said, “With reference to the previous announcement in which Mazaya Real Estate Development announced its intention to start studying the possibility of merging with Al Bandari Real Estate, Mazaya would like to inform its shareholders in particular and public investors in general that it has received an offer from Al Bandari related to the merger on January 22.”
“This offer has been referred to the board of directors for their review and to take necessary action, after consulting both the financial and legal advisors of the company,” the company said.
Accordingly, the board will disclose its recommendation as soon as it is ready, taking into consideration the requirements of the regulatory authorities, including the Qatar Financial Markets Authority and the Qatar Stock Exchange.
Mazaya had previously appointed Al Rayan Investment as a financial advisor, as well as Sharq Law Firm as a legal advisor and other specialised consultants to provide technical support to take appropriate decisions.
The move comes in line with Mazaya’s policy to join projects and transactions with a suitable income, enhancing the position of the company in the local market through the increase of assets.
The deal, if successful, will create a new entity that will be one of the largest players in the Qatari real estate sector.
In a statement issued earlier, Mazaya Real Estate Development Board Member and CEO Hamad bin Ali al Hedfa said, “The value of the transaction will be determined after the consultants’ work has ended and such transaction is expected to have its positive return, which results in an increase in the company’s profits and assets and enhances the stability of the company domestically and strengthens it regionally.”
Such a merger would reduce capital expenses, operating expenses and ensures the quality of services provided to customers, he said adding it will affect the earnings per share and benefit the shareholders positively.
Al Bandari Real Estate Company Chairman Mohammed bin Abdul Latif al Mana said, “Mazaya is one of the leading real estate developers listed on Qatar Stock Exchange. Mazaya has been a pioneer in the implementation of build–operate–transfer (BOT) contracts based on eco-friendliness and sustainable development standards in the development of its real estate projects. The company’s expertise in such investments is an added value to the potential deal between the two companies.”
“The potential transaction will expand the customer base of the two companies and raise the value of the companies’ financial leverage in terms of increasing their real estate assets and their unlimited expansion to develop the real estate sector in all its aspects through the launch of new projects and increase the volume of sales and the pace of implementation,” Mana said.
The merger will have a positive impact on the real estate market in Qatar in terms of contribution to the rebalancing of the market, he said adding it will diversify sources of income for both the companies.
In another filing on QSE, Qatar’s leading logistics firm Gulf Warehousing Company (GWC) disclosed the establishment of its subsidiary GWC Investment in Qatar. GWC Investments is 100% owned by Al Khaleej Chemicals Warehousing.