Thursday, Dec 15, 2011
DUBAI (Zawya Dow Jones)--Abu Dhabi real-estate developer Aldar Properties will allot shares worth more than $570 million Thursday to government investment firm Mubadala Development Co. under a mandatory convertible bond issued earlier this year as past of a government bail out.
Aldar, in a statement posted on the Abu Dhabi bourse website, said it would today convert the bonds worth 2.106 billion U.A.E. dirhams ($574 million) at a conversion price of AED1.75 and allot 1.203 billion shares in the property firm to its shareholder Abu Dhabi government-owned Mubadala.
Abu Dhabi's largest developer by market capitalization in January said it would sell about $3 billion worth of assets including its Ferrari World theme park to the government, and place a $760 million convertible bond with Mubadala.
The move was part of an Abu Dhabi government bail out of Aldar after the firm was hit hard by the fallout from the global financial crisis in 2009, which led to a 50% slump in property prices in Abu Dhabi, the largest emirate in the U.A.E., according to some estimates.
-By Oliver Klaus, Dow Jones Newswires; +9714 446-1693; Oliver.Klaus@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
15-12-11 0459GMT
