MIDEAST STOCKS-Emaar lifts Dubai to new 5-yr high as bond conversion fears abate | Reuters:
"Dubai bourse rose to a new five-year high on Wednesday with blue chip Emaar Properties gaining after it approved a bond conversion that will result in fewer new shares than expected.
The property developer responded to requests from convertible bond holders by agreeing to issue 18.7 million new shares; a tiny fraction of the company's 6.09 billion shares outstanding.
"I think this is a good deal - it allows some interest savings and it shows the management is flexible," said Sanyalaksna Manibhandu, senior analyst at NBAD Securities.
Emaar climbed 2.3 percent to 7.25 dirhams ($1.97), halting a two-session drop, and was the main support for the market.
A full conversion of the $500 million bond that Emaar issued in 2010 would result in dilution of only 2.2 percent in the stock price if it occurred at 4.38 dirhams per share, analysts at NBK Capital earlier estimated in a note."
'via Blog this'
No comments:
Post a Comment