IN’P IBRAHIM .N. PARTNERS Advised Union Properties PJSC on Landmark Capital Restructuring

IN’P IBRAHIM .N. PARTNERS Advised Union Properties PJSC on Landmark Capital Restructuring

IN’P IBRAHIM .N. PARTNERS (“INP”) is pleased to announce its role as legal advisor to Union Properties PJSC (“Union Properties” or the “Company”) in connection with the successful completion of its capital restructuring through a novel reduction of the Company’s issued share capital. The restructuring was designed to extinguish accumulated losses and restore financial flexibility while preserving shareholder value.

INP devised and implemented an innovative methodology for Union Properties’ capital reduction by reducing the nominal (par) value of each share from AED 1.00 to AED 0.666, rather than cancelling any of the Company’s outstanding shares.

This marks the first time such a methodology has been applied in the UAE.

Key Advantages of the Approach

• Preservation of Shareholding Structure, Shareholders continue to own the same number of shares they held prior to the capital reduction, ensuring that ownership percentages remain fully intact.
• Market Confidence, By avoiding the cancellation of shares, the restructuring enhances transparency and stability in the Company’s capital structure, mitigating potential concerns around dilution or misalignment.
• Liquidity Protection, Maintaining the same number of shares in circulation supports continuity of trading volumes on the Dubai Financial Market (DFM).
• Alignment with International Best Practice, The methodology mirrors capital reduction techniques commonly adopted in mature markets, positioning the UAE as a jurisdiction open to innovative corporate restructuring tools.
• Regulatory Compliance, The transaction was executed in close coordination with the Securities and Commodities Authority (SCA) and the DFM, ensuring strict compliance with all regulatory requirements.

Strategic Outcome

The successful restructuring positions Union Properties to strengthen its balance sheet, enhance its capacity to raise new capital, and restore investor confidence. The initiative underscores the Company’s commitment to financial sustainability while setting a precedent for other UAE-listed entities facing similar challenges.

Commenting on the transaction, Ahmed Ibrahim, (Managing Partner) of IN’P IBRAHIM .N. PARTNERS said,

“We are proud to have supported Union Properties in delivering a first-of-its-kind capital reduction in the UAE. This innovative approach not only provides an efficient mechanism to extinguish accumulated losses but also safeguards shareholder interests by maintaining their existing shareholdings. We believe this structure will serve as a model for other companies seeking effective, market-friendly solutions to capital restructuring.”

The IN’P IBRAHIM .N. PARTNERS team led by Ahmed Ibrahim (Managing Partner).

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