Emaar asked to convert bonds to shares

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Holders of Dubai-based developer Emaar Properties' convertible bonds have asked the company to convert them into shares, Emaar said in a bourse statement on Sunday.

Emaar said its board would discuss the matter at a meeting on Tuesday, leading stock market analysts to suggest the developer’s share price would temporarily fall.

Emaar issued a $500 million convertible bond in 2010 with an initial conversion price of AED4.75 per share.

The price had risen to AED7.36 at close of trade on Thursday - a 63-month high - after it announced a joint-venture project near the emirate's 2020 World Expo site.

The company signed a memorandum of understanding with Dubai World Central to develop an integrated urban centre and golf destination in what was the first infrastructure development project to be announced following the UAE successful bid to host the international event.

Mubasher senior sales trader Mohab Maher said while the share price was likely to fall on Sunday, it would be partly offset by heavy buying from foreign investors recently.

"It will put pressure on the stock but investors will take this opportunity to buy Emaar," he told Reuters.

Related:
Topics
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: Bode

Any premium set by Emaar for such conversion ?

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Why PE's back in vogue in the Middle East

Why PE's back in vogue in the Middle East

Confidence is returning to the Gulf’s private equity market after...

Blood on the bourse floor

Blood on the bourse floor

Arabtec’s share price collapse was the catalyst for a huge sell...

Risky business

Risky business

Libya’s stock market is one of the smallest in the Arab world...

Most Popular
Most Discussed