Dubai's Shuaa to issue 515 mln shares to DBG

Dubai-based Shuaa Capital said on Saturday it would issue 515 million shares to Dubai Banking Group (DBG), implementing an agreement to resolve a long-running bond dispute.

Shuaa said in June it had settled the dispute after months of negotiations and the threat of a lawsuit by DBG, by allowing DBG to take a 48.4 percent stake in the investment bank.

On Saturday, Shuaa said it had asked the Dubai Financial Market to issue DBG with 515 million shares in Shuaa, more than twice the amount agreed back in 2007 and making DBG the biggest shareholder in Shuaa.