Union Coop has announced plans to transition from a consumer cooperative society to a public joint-stock company (PJSC).
The decision, revealed during the Board of Directors meeting on Monday, aims to strengthen the cooperative’s financial foundation, enhance competitiveness, and achieve its long-term growth objectives.
The proposed transformation aligns with the UAE’s vision for the retail sector, reflecting Union Coop’s commitment to innovation and excellence. If approved, the move to a PJSC would bring several advantages, including increased transparency, regulatory oversight, and enhanced governance systems. This shift is also expected to bolster the local economy, improve shareholder confidence, and boost financial credibility.
Shareholders stand to benefit from new investment opportunities, including trading stocks on financial markets, enabling portfolio diversification and potentially higher returns. Additionally, the transition would allow Union Coop to expand its operations into new regions, broadening its customer base and implementing global best practices in corporate governance.
In response to a 2023 General Assembly request, Union Coop engaged Al-Tamimi Company to conduct a comprehensive feasibility study. The study will evaluate the legal and financial implications of the transformation and review relevant regulations. Findings will be submitted to the General Assembly and relevant authorities for final approval.
Union Coop’s proposed shift underscores its dedication to remaining a leading player in the UAE’s evolving retail landscape while delivering enhanced value to shareholders and customers.
News Source: Emirates News Agency
