By: Mahmoud Gamal
Abu Dhabi – Mubasher: Eshraq Properties’ stock rose 2.4% after its merger talks with Reem Investment, analysts told Mubasher.
The stock went up to AED 0.86 by 10:50 am UAE time, generating AED 7.56 million from the exchange of 8.83 million shares.
Eshraq is in advanced discussions with the management of Reem Investment regarding a merger.
Under the transaction, Reem will acquire a strategic share in Eshraq through subscription for its new shares in consideration for the acquisition of the former company’s group business and assets; thus, combining both real estate developers.
Reem’s possible merger with Eshraq reflects the latter company’s successful restructure plan, capital market analyst at Mena Corp Financial Services Essam Qssabiya told Mubasher.
As a result, Eshraq’s stock is expected to see active trades in the fourth quarter of 2017 following the merger's completion, Qssabiya added.
Eshraq targets to reach a stock price of AED 1, above which it will continue to rise to AED 1.20 and AED 1.25, technical analyst Mohamed Kamal said.
Translated by: Julian Nabil
