Emaar, Dubai’s largest publicly traded developer, will sell Namshi, its online fashion platform, to e-commerce company Noon for $335.2 million.
The sale of Namshi, the e-commerce division of Emaar Malls, to Noon has been given preliminary approval by the board of directors of Emaar, the business announced in a statement.
The sale of Namshi, the e-commerce division of Emaar Malls, to Noon has been given preliminary approval by the board of directors of Emaar, the business announced in a statement.
As stated in the statement by Ahmad Al Matrooshi, a member of the Emaar board, “further information will be disclosed once the approvals of Noon’s board are duly acquired.”
Emaar stated that “the price shall be a cash consideration of $335.2m.”
“The aforementioned financial consideration represents Namshi’s equity value, which is $350 million more than the company’s enterprise value.
This has been normalized to account for required working capital and corporate debt.
According to the statement, Emaar will receive the equity value in cash as payment for the transaction.
According to data from ecommerceDB, Amazon is the biggest online retailer in the UAE, with net sales of over $500 million in 2021.
Namshi came in second with $249 million, followed by Noon, a portal supported by Mohamed Alabbar, the creator of Emaar, and the Public Investment Fund of Saudi Arabia, with $169 million.
In 2017, the company paid Rocket Internet’s Global Fashion Group $151 million for a 51% share in Namshi. Later on, it paid $129.5m for the remaining interest in the online fashion retailer.
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