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| 19 June, 2017

Abu Dhabi fund takes 5% stake in Dana Gas

UAE currency image used for illustrative purpose.

UAE currency image used for illustrative purpose.

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The fund was launched last October as a $200 million vehicle with a strategy of taking minority stakes in companies

DUBAI/ABU DHABI, June 19 (Reuters) - Goldilocks Investment Co, an open-ended equity fund which is part of Abu Dhabi Financial Group, said on Monday it had bought 5 percent of Abu Dhabi-listed gas producer Dana Gas.

The fund was launched last October as a $200 million vehicle with a strategy of taking minority stakes in companies and helping them to restructure and develop. Its brief statement did not say what it intended to do with Dana.

Dana is struggling to recover hundreds of millions of dollars in overdue payments from Egypt and Iraqi Kurdistan. Last week, it proposed a restructuring of $700 million of its Islamic bonds, arguing that the instruments had become illegal under United Arab Emirates law since they were issued.

Dana Gas's shares jumped 66 percent this month after the company proposed the bond restructuring. Some brokers said they believed a strategic investor was building a stake.



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(Reporting by Tom Arnold and Stanley Carvalho; Writing by Andrew Torchia. Editing by Jane Merriman) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))