Union Properties Plans Major Capital Reduction
Union Properties proposes significant capital reduction to address losses, a move aimed at stabilizing its financial position.
Summary
Union Properties is set to hold its Annual General Assembly Meeting to discuss a major capital reduction plan aimed at addressing significant accumulated losses.
Union Properties, a prominent public joint-stock company in the UAE, has announced a pivotal Annual General Assembly Meeting scheduled for April 9, 2025. The meeting will address several critical agenda items, with a significant focus on the company's financial restructuring through a proposed capital reduction.
The Board of Directors has put forward a proposal to reduce the company’s capital from AED 4.29 billion to AED 2.86 billion, effectively extinguishing accumulated losses of AED 1.87 billion. This move is part of a strategic effort to stabilize the company's financial standing and align its capital structure with the current market realities.
The agenda includes authorizing the Chairman to appoint a meeting secretary and vote collector, reviewing reports from the Board of Directors and the CEO, and considering the Auditor’s Report for the fiscal year ending December 31, 2024. Shareholders will also discuss the company’s balance sheet, profit and loss account, and the capital reduction plan.
A special resolution will be considered for the capital reduction, which involves reducing the nominal share value by 33.4% to AED 0.666 per share. Alternatively, if this resolution is rejected, a more substantial reduction of 43.58% will be proposed, bringing the nominal share value to AED 0.5642 per share.
The capital reduction is a crucial step for Union Properties as it seeks to manage its financial challenges and pave the way for future growth. By addressing the accumulated losses, the company aims to enhance investor confidence and improve its financial health.
Given the strategic nature of these decisions, potential investors and current shareholders should carefully consider the implications of the proposed changes. The capital reduction, while necessary, reflects the company's ongoing financial struggles. However, it also demonstrates a proactive approach to financial management.
In light of these developments, it is advisable for investors to hold their positions. The capital reduction could lead to a more sustainable financial structure, providing a foundation for future growth opportunities.
Source
Summary
Union Properties PJSC invites shareholders to its Annual General Assembly Meeting on April 9, 2025, at the Ritz Carlton Hotel in Dubai and virtually. The agenda includes authorizing the appointment of the meeting's secretary and vote collector, reviewing reports from the Board of Directors, CEO, and auditors, discussing the company's financial performance, and considering a capital reduction plan. Shareholders will also discuss losses, potential auditor and director liability, board remuneration, and the appointment of new auditors. Special resolutions regarding capital reduction are proposed, with alternatives depending on shareholder approval. Shareholders can register to attend and vote electronically, appoint proxies, and access reports via the company's website. A quorum of 50% is required for the meeting to be valid, with a second meeting scheduled if necessary.
