Mubadala Development's shareholding in Tabreed increased yesterday in exchange for previous financial support for the Abu Dhabi district cooling company's debt restructuring plan.
Tabreed yesterday completed a tender offer of shares as repayment for a Dh1.7 billion (US$462.8 million) Islamic bond due this month. Under the agreement, Tabreed completed an issue of 415.68 million shares to repay the sukuk, it said.
"The completed recapitalisation programme provides the company with a stable capital structure and long-term funding for future growth," Tabreed said.
Mubadala, a strategic investment company owned by the Abu Dhabi Government, played a significant part in helping to revive the fortunes of Tabreed after it became mired in debt during the global downturn. In March the company secured an extra Dh3.1bn from Mubadala.
After the conversion of the Islamic trust certificates into shares, Mubadala now holds a 26.1 per cent stake in Tabreed. The share includes a 14.8 per cent stake held directly by the strategic investment vehicle and a further 11.29 per cent stake through General Investments, a Mubadala subsidiary. Mubadala previously held a 16.79 per cent stake through its own holding and that of General Investments.
Mubadala's influence in Tabreed has increased to match its rising financial stake in the company. Waleed al Muhairi, Mubadala's chief operating officer, was this month appointed as Tabreed's new chairman as part of a shake-up of the board.