Aldar Converts Mubadala-Held BondsFriday, December 16, 2011
Abu Dhabi: Aldar Properties PJSC converted bonds into shares at the lower end of their price range as Abu Dhabi's biggest real estate company grapples with tumbling property prices and declining market value. The shares dropped.
Aldar yesterday convert Dh2.1 billion worth of bonds held by Mubadala Development Co, an investor with stakes in Carlyle Group and General Electric Co, into shares of Dh1.75 each, the company said in a statement to the Abu Dhabi bourse.
The original conversion terms stipulated that the bonds would be converted at not higher than Dh2.30 and not lower than Dh1.75.
Home prices in Abu Dhabi may drop 30 per cent more after declining as much as 55 per cent from the market's peak in mid-2008, according to Dubai-based Rasmala Investment Bank Ltd.
Aldar shares dropped 4.2 per cent to a record-low of 92 fils at close in Abu Dhabi. The stock has plunged 60 per cent this year compared with an 11 per cent decline for the benchmark ADX General Index. The company's market value has slumped to Dh2.65 billion this year compared with Dh26.9 billion at the end of 2007, according to data compiled by Bloomberg.
Aldar in January agreed to sell assets including a Ferrari theme park and convertible bonds to Abu Dhabi's government for Dh19.2 billion to pay creditors.Source: Gulf News