Emaar asked to convert bonds to shares

Emaar share price expected to fall as convertible bond holders ask the company to covert them to shares

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.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

Posted by: Bode

Any premium set by Emaar for such conversion ?

All comments are subject to approval before appearing

Further reading

Features & Analysis
Does the Saudi IPO signal the end of the age of oil?

Does the Saudi IPO signal the end of the age of oil?

Saudis may want to capitalise on an asset that’s only going to...

China paves way for market-based IPO system

China paves way for market-based IPO system

A new law would let companies, not regulators, determine when...

Danger zone: what would the wider impact of a slowdown in China have on the Gulf?

Danger zone: what would the wider impact of a slowdown in China have on the Gulf?

Last week’s stock market crash in China sent shockwaves through...

2
Most Discussed
  • 5
    How Saudi Arabia blundered into OPEC oil cut

    Before Saudi Arabia's decision to move to unlimited production, analysts broadly thought break-even for shale was usd80. After the move, shale producers... more

    Tuesday, 30 May 2017 12:44 PM - Anastasios Dalgiannakis
  • 2
    One killed, 14 injured in multiple Dubai crashes

    The drivers should pay attention to driving and not their phones, social media is the problem, see it everyday, cars all over the road taking up 2 lanes... more

    Tuesday, 30 May 2017 9:07 AM - Good driver
  • 1
    The cost of the US laptop ban

    US is really making crazy decisions and deals will not help anybody citizens or travellers. confused president and his rules more

    Tuesday, 30 May 2017 9:04 AM - philip butler
  • 19
    It's time for restaurants to stop shaming smokers

    Comparing Driving to Smoking is the most shameless ploy to convince people that we should not persecute smokers.

    If your vehicle hits someone... more

    Thursday, 25 May 2017 12:47 PM - Elkhorn
  • 9
    Revealed: huge disparity in Dubai school fees

    I recall a recent study by Alpen Capital suggesting that the average cost of a child's entire life of schooling in Dubai is about AED 1 million. Although... more

    Monday, 29 May 2017 9:21 AM - New Expat
  • 5
    How Saudi Arabia blundered into OPEC oil cut

    Before Saudi Arabia's decision to move to unlimited production, analysts broadly thought break-even for shale was usd80. After the move, shale producers... more

    Tuesday, 30 May 2017 12:44 PM - Anastasios Dalgiannakis
sponsoredTracking