Dubai’s DXB Entertainments gets approval for US$1.17 billion debt transfer

DXB Entertainments, the Dubai-based leisure and entertainment company, has advised that it has won approval from its shareholders to transfer AED4.3 billion (US$1.17 billion) debt to United Arab Emirates developer Meraas Leisure and Entertainment in exchange for 53 billion ordinary shares.

In February, DXB Entertainments - which operators major theme parks including Motiongate Dubai, Bollywood Parks Dubai, Legoland Dubai and Legoland Water Park and two hotels and a themed retail and dining destination: Lapita hotels, Legoland Hotel and Riverland Dubai - had advised that Meraas’ offer to acquire its debt represented the “only viable route” for shareholders to recover value from their investment.

The offer, first made in late December, saw Meraas offer to acquire DXB Entertainments’ debt and convert it into new  shares, boosting its ownership - which already stood at over half of the theme park group - to more than 90%.

Approval has now officially been won from shareholders to transfer the debt to Meraas Leisure and Entertainment following the company’s general assembly earlier in the week.

A filing made to the Dubai Financial Market will see DXB Entertainments convert its debts with Emirates NBD into ordinary shares, which have been valued at AED1 each in the share capital of the company at a conversion rate of AED0.08 per share.

Having not posted a profit since listing in 2014, in November last year the company advised that its accumulated losses (as of the end of September 2020) stood at 78% of capital.

Images: The soon to open Ain Dubai Ferris wheel (top) and the entrance to Bollywood Parks Dubai (below).