Emaar asked to convert bonds to shares

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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.

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Emaar Properties - UAE
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-0.15 -1.37 (%)
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Posted by: Bode

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