Tuesday 20 December 2011

Aldar of Abu Dhabi Drops to Record Amid Bets on Delisting; Yield Declines - Bloomberg

The shares dropped 2.3 percent to 85 fils, the lowest since their listing in April 2005, at the 2 p.m. close in Abu Dhabi. Sorouh Real Estate Co. (SOROUH), the emirate’s second biggest developer, retreated 1.2 percent to a record low of 81 fils. Abu Dhabi’s benchmark ADX General Index (ADSMI) lost 0.8 percent to 2,373.11, closing at the lowest since March 2009.
“Investors are concerned about a possible scenario of delisting” after a bond conversion by state-owned Mubadala Development Co., Tariq Qaqish, deputy head of asset management at Dubai-based Al Mal Capital, said by e-mail today.
Aldar, grappling with tumbling property prices in Abu Dhabi, last week converted bonds valued at 2.1 billion dirhams ($572 million) held by Mubadala, its largest shareholder and an investor with stakes in Carlyle Group and General Electric Co. (GE), into shares of 1.75 dirhams each. That was at the bottom end of the agreed range of 2.30 dirhams to 1.75 dirhams.

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