Dubai Parks and Resorts is planning to include an addition to its signature entertainment destination that will house a Six Flags theme park, bringing the total cost of the entire project to over $3 billion.
Dubai Parks and Resorts will hold its first General Assembly Meeting on April 18, 2016, during which shareholders will be asked to pass a special resolution to approve a proposed capital increase of Dh1.68 billion to primarily finance the development of the Six Flags theme park within the Dubai Parks and Resorts destination. Shareholders are also being asked to authorise the board of directors to determine the timing of the proposed rights issue.
Subject to shareholder approval, the board of directors of Dubai Parks and Resorts will have one year from the date of the General Assembly to execute and decide upon the timing of the proposed rights issue, which is also subject to the approval of the Securities and Commodities Authority. Once the rights issue is announced and successfully concluded, the company's issued share capital will become Dh7,999,912,670.
"The addition of a Six Flags branded theme park - the first in the region - will further establish Dubai Parks and Resorts' position as the Middle East's largest leisure and entertainment destination," said Raed Kajoor Al Nuaimi, chief executive officer of Dubai Parks and Resorts.
"Six Flags is one of the world's largest amusement park corporations with 18 properties around the world. This means we will be able to strengthen the appeal of our destination, attracting thrill seekers of all ages, to complement motiongate Dubai, Legoland Dubai, and Bollywood Parks Dubai, which broadly appeal to families. As the fourth most visited city in the world, Dubai Parks and Resorts, and the additional Six Flags component, is set to benefit from the UAE's increasingly popularity as a tourist destination as well as it growing population," Al Nuaimi explained.
The net proceeds of the rights issue will be used to primarily finance the expansion of Dubai Parks and Resorts theme park offering with the addition of a Six Flags branded park.
None of the additional capital being raised will be used to fund the existing Dubai Parks and Resorts development expected to open in October this year. Planned to open in the fourth quarter of 2019, the proposed Six Flags Dubai will be the fourth theme park at the Dubai Parks and Resorts destination and is expected to include close to 27 rides and attractions for all ages.
The total capital requirement for the project is estimated at Dh2,606 million, with an additional Dh65 million being raised to cover new business development and issue expenses. The total capital of Dh2,671 million will be funded through a debt financing of Dh993 million, and the remaining Dh1,678 million will be funded through the proposed rights issue.
Content Courtesy : khaleejtimes.com