DXB Entertainments is in process of being wholly owned by Meraas as part of recovery. DXBE accumulated losses at Dh8.16b
Dubai , Dubai
05 May 2021, 12:00 AM
31 May 2021, 12:00 AM
The theme park operator DXB Entertainments now has accumulated losses of a staggering Dh8.16 billion.
The company’s 2020 operational and financial performance was significantly impacted by the fallout of the Covid-19 pandemic, resulting in the closure of the destination for a period of approximately six months during March to September 2020. As at FY 2020, the company had Dhs6bn in liabilities from financing activities and net debt of Dhs5.2bn.
Meraas already has raised its stake to more than 90 per cent and it’s only a matter of time before it buys up the rest. Following this, DXB Entertainments’ stock will be delisted from DFM.
The management of Dubai Parks & Resorts has got some relief in terms of accumulated losses to capital ratio. As against 98 per cent, it is now at 13 per cent after the conversion of the company’s convertible bonds into new shares. The current issued share capital is Dh62.82 billion.
In addition, the senior debt that DXB Entertainments was carrying has been acquired by Meraas, the Dubai master-developer that is buying up the company in full. It was last year that Meraas announced it was making the move, as there were few options left for DXB Entertainments to take care of its debt