How will it be evaluated that the minimum purchase cost level of AED 4 million has been attained, making Participation the minimum ownership requirement?
The monetary minimum acquisition cost threshold, amounting to AED 4 million, shall be ascertained by taking into account the valuation of the equity or capital contribution extended, encompassing any cash disbursements made, the value of any subsequent equity and capital contributions furnished to the Participations, and expenses associated with the acquisition. In instances where the acquisition is executed using a currency other than the UAE Dirhams, the acquisition cost shall be determined utilizing the prevailing exchange rate as of the acquisition date or the formation of the ownership interest.
The cost shall not be subject to adjustment for inflation or any appreciation in the value of the underlying ownership interest. In cases where a partial sale or disposition of ownership occurs, the acquisition cost shall be proportionally reduced based on the average acquisition costs attributable to the portion that has been sold or disposed of.
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