Dubai’s Marka acquires Retailcorp for over Dh220m

Dubai-listed Marka, which focuses on the retail and hospitality sectors, today announced that it has agreed to acquire Retailcorp UAE, a subsidiary of Istithmar (a Dubai World company), in a deal valued above Dh220 million, said a press statement.

The news pushed Marka’s shares up by four per cent to Dh1.3 in early trade on the Dubai bourse. The stock is above Dh1 IPO price, but well below Dh2 record high hit on listing day.

The acquisition, which will be funded by a blend of the company’s own funds and bank facilities, gives Marka ownership of a network of 15 sporting goods outlets in some of the most highly sought-after retail locations in the UAE, with rights to sell sports products manufactured by the world’s most respected brands including Nike, Reebok and adidas.

Mall locations include Mall of the Emirates, Mirdif City Centre, Ibn Batuta Mall, Abu Dhabi Mall and Al Ain Mall.

Jamal Al Hai, Chairman of Marka, said: “This acquisition is in line with our strategy to establish a diverse portfolio of assets and successful businesses. This deal also bolsters and diversifies Marka’s revenue sources, our bottom line, and the value we bring to our shareholders.”

Khaled Almheiri, vice-chairman of Marka, said: “We are confident that this acquisition will have an immediate positive impact on Marka’s revenues and profits. It will position Marka to become operationally profitable in 2015, its first full year of operations, which will reflect positively on Marka and its shareholders, who number approximately 6,000.”

Nick Peel, CEO of Marka, said: “The growth of the sports retail segment in the UAE and the region is outpacing what we are seeing on the global level. This is a result of factors ranging from strong population growth, rising income levels, and the pursuit of a growing number of citizens and residents adopting a healthy lifestyle, in part due to the UAE government’s support of the sports sector.”

Marka aims to expand the network of the sporting goods stores, under the brand name of ‘Modell’s Sporting Goods’ in the UAE and the region, Peel confirmed.

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