SHUAA Capital, GCC's leading financial services institution and Dubai Banking Group, a Dubai Group company, announced on Thursday that they have agreed new terms for the convertible bond, originally entered into in October 2007. Building on the invitation extended by the Securities and Commodities Authority, SHUAA Capital psc and Dubai Banking Group have reached agreement regarding the convertible bonds issued by SHUAA to Dubai Banking Group, whereby Dubai Banking Group will convert the AED1,500 million convertible bonds into 515 million shares, representing a 48.4 percent stake of SHUAA Capital's share capital post-conversion. Conversion will be effected in accordance with UAE legal procedures and subject to final approval by the concerned authorities. As a result, SHUAA's issued and paid up capital will be increased by AED515 million to AED1,065 million, while the balance of AED985 million will be credited to the premium account within equity. Total shareholder equity will remain unchanged at AED2 billion. The new agreement represents a conversion price of AED2.91 per share equal to a premium of 127 percent to the closing share price of SHUAA of AED1.28 on Wednesday. The foregoing terms are within the authority that the company's Board received from SHUAA's shareholders in their extraordinary general meeting held in Dubai on April 15, 2009. Majid Al Ghurair, chairman of SHUAA Capital, said: “We believe that this agreement was the best course of action under the circumstances and we worked swiftly to remove the uncertainty that followed the marked escalation over the past week. This was especially important in view of the nature of our business. Despite our differences, we both recognized the need to resolve them amicably for the sake of all our shareholders and our standing as a leading UAE company. We would like to take this opportunity to start a new page and welcome Dubai Banking Group as SHUAA's largest shareholder.”
