Tuesday 31 March 2020

#UAE's Dana Gas explores spin-off and listing of upstream business - Reuters

UAE's Dana Gas explores spin-off and listing of upstream business - Reuters:

United Arab Emirates’ Dana Gas is considering spinning off its upstream business and listing the unit on the Abu Dhabi Securities Exchange, the Sharjah-based energy company said on Tuesday.

Dana Gas, which operates concessions Iraq’s Kurdish region and Egypt, said it was studying a potential demerger of the business into a new company, according to a statement to the stock exchange.

Should the transaction succeed, shareholders in Dana Gas will own shares in the two companies, the company said.

Spinning off businesses typically allows the parent company and the spin-off alike to focus better on their respective strategies, while investors tend to value both more highly due to greater transparency.

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