DUBAI (S&P Global Ratings) June 9, 2021--S&P Global Ratings today said that the announced possible delisting of Dubai-based residential real estate developer Damac Real Estate Development Ltd. (Damac; B/Negative/--) is credit neutral. Damac's founding shareholder and chairman Hussain Sajwani, who currently owns 72.215% of the company, intends to take it private by buying out the minority shares. As a consequence of his offer, Mr. Sajwani resigned as the chairman of Damac with immediate effect. We understand that delisting will not have any effect on Damac's balance sheet, since the consideration will be paid by the acquirer. We also note that Damac cannot distribute dividends due to restrictions under its bond indenture. Therefore, we expect Damac's credit metrics will be unchanged,
