Sorouh cuts foreign ownership to stem share slide

Abu Dhabi's second largest developer cuts shareholding allocated for foreigners to 15%.
Sorouh cuts foreign ownership to stem share slide
By Dylan Bowman
Tue 11 Nov 2008 09:05 AM

Sorouh Real Estate, Abu Dhabi's second largest developer by market value, has cut the amount of its shares that foreign investors can own in the wake of recent market volatility that has seen the company's share price nosedive.

Sorouh said on Tuesday in a statement on the Abu Dhabi bourse website that it has reduced the level of shareholding allocated for foreign investment from 20 percent of the total outstanding shareholding to 15 percent.

"The board has taken this decision to protect the interests of Sorouh's long-term investors, both local and foreign," the company said.

"The step follows the recent volatility in the share price driven by short-term speculation."

Sorouh's share price on Monday closed down 6.57 percent at 3.27 dirhams. The company's shares are down 62.5 percent year-to-date.

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