Shares of Aldar Properties and Arabtec Holding fell today after the companies announced separate issuances of convertible bonds.
Aldar Properties, developer of Yas Island, was trading 4.1 per cent lower to Dh2.30 at 10:25am on the Abu Dhabi bourse. Arabtec Holding, Dubai's biggest contractor, lost 3.8 per cent at the open, before trading 2 per cent lower at Dh1.96 a share.
The developer will be holding a meeting of the board of directors on Thursday January 13. Aldar said it is considering the sale of "certain assets" as well as calling an extraordinary general assembly to approve the issuance of convertible bonds.
"The board of directors of the firm shall also consider the sale by the company of certain of its assets," the company said in a statement to the Abu Dhabi Securities Exchange.
The developer will also be discussing the conversion into shares of previously issued convertible bonds to Mubadala Development Company in 2008.
Arabtec Holding said it is calling for an extraordinary general assembly to seek the "approval of the issuance of a 5-year convertible bond amounting to US$150,000,000 or the equivalent of Dh552,750,000 based upon the prevailing market share price," in a filing to the Dubai Financial Market.
Arabtec also said it will seek the approval for the increase of capital through a rights issue by offering 398,666,667 shares to shareholders in the amount of 1 dirham, so that each 3 shares receives one share," the company said in a filing to the Dubai Financial Market.
Aldar said in March that it sold assets on Yas Island to the government for Dh9.14bn. The developer has Dh22.4bn of debt outstanding. In November, the developer said it was in the final stages of talks with the Abu Dhabi Government over its cash requirements.
