Tuesday, 11 December 2012

Dana Gas Jumps Most in 11 Months on Debt Revamp: Abu Dhabi Mover - Businessweek

Dana Gas PJSC (DANA) rallied the most in almost 11 months on bets the United Arab Emirates fuel producer’s $920 million Islamic bond restructuring will spur profit growth.

The shares advanced 7.5 percent, the most since Jan. 18, to 43 fils at the close in Abu Dhabi. The company was the second- biggest gainer in Abu Dhabi’s ADX General Index today, as 83 million Dana Gas shares were traded, almost eight times the 12- month daily average. The company yesterday had its price estimate raised 55 percent to 87 fils at EFG-Hermes Holding SAE after the debt revamp announcement. The investment bank maintained a buy rating on the stock.

Dana Gas shares dropped 4.4 percent this year on concern the natural gas supplier may default, compared with a 9 percent gain for the benchmark ADX General Index. (ADSMI) The company, which was forced to restructure the debt after political instability in Egypt and Iraq’s Kurdish region led to payment delays, will pay bondholders $70 million in cash and split the remaining Shariah- compliant debt into $425 million tranches of convertible bonds and ordinary sukuk, it said yesterday.

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