Emaar bondholders seek equity conversion
Dubai, December 15, 2013
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 December 17.
The Dubai developer had issued a $500 million convertible bond in 2010. The initial conversion price was set at the equivalent of 4.75 dirhams per share, according to the original issue prospectus.
Experts believe the Emaar shares are likley to fall in Sunday's trading.
"It will put pressure on the stock but investors will take this opportunity to buy Emaar," remarked Mohab Maher, senior sales trader at Mubasher. Heavy buying from foreign investors in recent sessions will partly offset any selling pressure, he added.
Shares in Emaar had jumped to Dh7.36 on Thursday - a 63-month high - after it announced a joint-venture project near the emirate's 2020 World Expo site.-Reuters