Web Desk
DUBAI: Retail Pioneer ‘Union Coop’ in a move aimed at enhancing its presence, and sustainability and expanding its operations, has begun studying the transition from a consumer cooperative society to a public joint-stock company. This decision to explore the possibility to convert to a PJSC was formalized at the Board of Directors meeting held on November 25, 2024, during which the idea of transforming into a public joint-stock company was discussed. This study is part of Union Coop’s efforts to maximize its financial resources, increase its competitive capabilities, and achieve its strategic goals, including the development of its projects, expansion of its reach, and improvement of its services provided to shareholders, customers, shoppers, and the community.
This transformation is in line with Union Coop’s efforts to keep pace with the developments in the retail sector in the country, in a manner that aligns with the vision of the UAE’s wise leadership. The aim is to elevate the country’s economic position and achieve growth that strengthens the nation’s economy. The shift will contribute to the local economy and enhance transparency and governance systems. If the transformation is realized, the cooperative will be subject to the laws and regulations governing public joint-stock companies, which are subject to strict regulatory oversight, thereby enhancing transparency and credibility in financial transactions and increasing shareholders’ trust in the company’s operations.
The transition to a public joint-stock company will bring several benefits to both shareholders and customers. It will open up new investment opportunities for shareholders, linked to the company’s performance and financial results. This will also enable shareholders to diversify their investments and increase their financial portfolios through broader stock trading on the financial market, which enhances their potential for higher long-term returns. Moreover, it will allow Union Coop to expand into new geographic areas, enabling more customers to benefit from the company’s services across a wider region, and also implementing best corporate governance practices.
At the request of the 2023 General Assembly, the cooperative appointed Al-Tamimi Company to work on the transformation file, to submit a comprehensive study exploring transformation of its corporate structure into a public joint-stock company.
The study will include an evaluation of the legal and financial aspects, in addition to reviewing the legal regulations and systems in this regard, which again will be presented to the competent authorities and the General Assembly to make the final decision.
It is worth noting that Union Coop has seen exceptional growth this year, achieving significant successes due to its clear strategic vision, the efforts of its team, and its Board of Directors. The cooperative is looking forward to a promising future, ensuring the sustainability of this commercial entity to deliver optimal value to its shareholders and partners.
