The talks between Dubai-based investment bank Shuaa Capital and Dubai Banking Group (DBG), a subsidiary of Dubai Group (DG), to agree over a Dh1.5 billion convertible bond issue, has failed once again.
In October 2007, Shuaa Capital sold a Dh1.5 billion convertible bond to Dubai Banking Group. However, in October 2008, on maturity, DG rejected to convert the shares at the agreed price as Shuaa’s share price plunged due to financial crisis.
Since then Shuaa is trying to convince DB for conversion, but the deadline for resolution has expired. Subsequently, Shuaa asked the Dubai Financial Market (DFM) to register 250 million new shares to DG, which would make DBG a 32% shareholder. In response, DBG, which is reeling under the real estate and financial services downturn, rejected the share offer and has asked DFM to hold back their registration.
DFM issued a statement saying that it would not register the shares in the name of DBG, until it receives a letter from both jointly, or an order from the concerned authorities requesting us to have the shares registered in the name of Dubai Banking Group, reported Gulfnews.
