Dubai Banking Group to take Shuaa stake
Dubai, September 29, 2008
The Dubai Banking Group will take a 32 percent equity stake in investment bank Shuaa Capital by converting 1.5 billion dirhams ($408.4 million) of bonds into shares, according to media reports.
The decision to convert the bonds on October 31 comes one week after Shuaa was fined around $1 million and sanctioned by regulators for manipulating share prices through irregular trades.
The Dubai Banking Group, owner of the unlisted Islamic Dubai Bank, is part of Dubai Holding, which is owned by the government.
Separately, Dubai Group -- also a part of Dubai Holding -- said it would buy a 51 percent stake in Acacia Real Estate Limited, in which Bahrain's TAIB Bank is the main shareholder, through $80 million in equity. -Reuters