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Wed 21 Dec 2011 03:17 PM

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Abu Dhabi's Aldar Properties says no plans to delist

Official dismisses rumours that a government shareholder may take the developer private

Abu Dhabi's Aldar Properties says no plans to delist
Share of the developer slumped 4.7 percent in early trading on Wednesday

Abu Dhabi's Aldar Properties has no plans to delist from the Abu Dhabi stock exchange, the company's deputy chief executive officer said on Wednesday, dismissing speculation that a major government shareholder may take the developer private.

"We won't be delisting," Mohammed Khalifa Al Mubarak said, after Aldar's shares fell to a record low.

Share of the developer slumped 4.7 percent in early trading on Wednesday, hitting a low of AED0.79 ($0.22), before recovering to AED0.81.

Aldar's year-to-date losses has extended to around 63 percent, underperforming the Abu Dhabi market, which is down 12.7 percent this year.

Mubarak dismissed the talks about delisting as "rumours".

Aldar's share price was diluted on Thursday after it converted a portion of bonds held by state fund Mubadala Development Co into shares. It could eventually take Mubadala's stake in the developer to nearly 60 percent.

In January, Abu Dhabi stepped in with a $5.2bn support package for the struggling flagship developer. The rescue plan included the sale of its key assets such as the Ferrari World theme park, located on Yas Island.

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