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Tue 14 Apr 2009 08:35 AM

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Shareholders set for vote on Shuaa closure

Future of Dubai's largest investment bank will be decided at meeting on Wednesday.

Dubai-based investment bank Shuaa Capital said its shareholders will meet on Wednesday to decide whether the company would continue operations or be dissolved.

Shuaa, Dubai's biggest investment bank, posted a fourth-quarter loss of 577.4 million dirhams ($157 million).

At an extraordinary general meeting, the firm's shareholders will make a "statutory decision to continue or dissolve the company pursuant to Article 35 of the UAE Commercial Companies Law," Shuaa said in a statement on the Dubai bourse website on Monday.

Shuaa Securities Chief Executive Mohammed Ali Yasin was quoted by daily Emirates Business as saying 60 percent of the company's shareholders had already lent support for Shuaa to continue operations.

Shareholders will also decide whether to give the board authorisation to amend the terms of 1.5 billion dirham ($408.4 million) of convertible notes, including possibly amending the maturity date and conversion rate, the bank said.

Former boomtown Dubai, where the stock market fell 72 percent last year, is struggling with a sharp real estate price correction. (Reuters)

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DG 10 years ago

Shuaa as the leading investment bank in the region with a track record of managing huge IPO's needs to stay alive to cater to the needs of the region when the world economy recovers. The company is as important to the UAE financial market as the banks and brokerages are.

Red5 10 years ago

I don't think Shuaa had the monopoly on managing IPO's. My guess is Mr DG owns shares in Shuaa??

Dereg 10 years ago

Managing IPOs or managing private equity or investment banking deals in Dubai in the last 5 years was as difficult as filling a bucket under a torrential rainfall! It does not prove anything about their caliber.