Drake and Scull completes sale of ONE PALM stake
Drake & Scull International has sold its ownership share in the ONE PALM development in Dubai to its joint venture partner Omniyat Properties and DSI that was launched in 2014.
The flagship project, which is located on the left trunk of Palm Jumeirah, was launched by the pair in 2014.
The partners agreed to a provisional settlement plan comprising of consecutive phases that is scheduled to be completed in 2017 which will generate liquidity of over AED 300mn ($81.7mn) for DSI, the Dubai-listed engineering and services firm said in a statement.
The first phase of the settlement plan is approved and the proceeds of the payment will be remitted in March 2017. Progress updates on the residual phases will be further announced by the joint venture partners upon finalisation throughout the fiscal year, the statement said.
This transaction marks an important milestone in the DSI turnaround and capital restructuring plan that was initiated in Q4 2016. The company is progressing steadily with its divestment program and will continue to pursue the disposal and monetisation of its non-core assets and non-performing subsidiaries to generate cash for the business.
DSI announced in February 2017 several strategic measures to stabilize the business in preparation for a new phase of financial & operational recovery. Shareholders are due to convene at the companys AGM next month to approve these measures. The proposed date of the meeting will be announced by the company by end of March 2017.