Union Coop begins studying transformation from consumer cooperative to PJSC
The Union Coop has started researching the process of becoming a public joint-stock company (PJSC) after being a consumer cooperative organization.
The decision, which was made public at Monday’s Board of Directors meeting, is a component of the cooperative’s plan to increase its financial resources, become more competitive, and accomplish its long-term objectives, which include reaching a wider audience, creating projects, and enhancing services for customers, shareholders, and the community.
In keeping with the leadership’s vision, this change supports Union Coop’s efforts to stay up to date with changes in the retail industry in the United Arab Emirates.
If successful, the shift is anticipated to boost the local economy and improve governance and transparency. The Union Coop would be subject to strict regulatory scrutiny and function in accordance with the rules governing public joint-stock corporations. This would boost financial transactions’ legitimacy, promote transparency, and boost shareholders’ trust in the business’s operations.
Among the many advantages of becoming a PJSC would be the creation of new investment options for shareholders, who would profit from the business’s financial success.
By trading stocks on the financial market, shareholders would also have the opportunity to diversify their holdings, which might boost long-term gains. In addition to offering services to a larger client base and putting best corporate governance procedures into effect, the move would allow Union Coop to grow into new areas.
The 2023 General Assembly requested that Union Coop hire Al-Tamimi Company to carry out a thorough analysis of the viability of this change. The research will be submitted to the appropriate authorities and the General Assembly for a final decision after evaluating the financial and legal ramifications and reviewing relevant rules.
