Sorouh cuts foreign ownership to stem share slide

FOREIGN OWNERSHIP: Sorouh has reduced the amount of shares foreigners can own to 15 percent. (ITP Images)

Sorouh Real Estate, Abu Dhabi's second largest developer by market value, has cut the amount of its shares that foreign investors can own in the wake of recent market volatility that has seen the company's share price nosedive.

Sorouh said on Tuesday in a statement on the Abu Dhabi bourse website that it has reduced the level of shareholding allocated for foreign investment from 20 percent of the total outstanding shareholding to 15 percent.

"The board has taken this decision to protect the interests of Sorouh's long-term investors, both local and foreign," the company said.

"The step follows the recent volatility in the share price driven by short-term speculation."

Sorouh's share price on Monday closed down 6.57 percent at 3.27 dirhams. The company's shares are down 62.5 percent year-to-date.

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READERS' COMMENTS

A useless move
Posted by lee, Dubai, UAE on Tuesday 11 November 2008 at 10:03 UAE time

Does Sorouh believe all the speculators are foreigners? This is a useless move, I would even say a "panic" decision...let's see if Sorouh's shares go up or down for the rest of the week.

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