Dubai:
Dubai Financial Market said (DFM) on Tuesday it plans to study the inclusion of Amlak Finance shares, which got listed on Tuesday, on the general index after a month.
The exchange is also studying the inclusion of Amlak in the subindex of the banking sector also after a month of trade resumption, subject to the index rules, it said in an emailed statement.
Shares of Amlak Finance were re-listed after a gap of nearly seven years.
“This step represents a positive development for investors; particularly that Amlak Finance has a large investor base of 29,000 shareholders as enables DFM investors to participate in one of the key sectors in the UAE,” Eisa Kazim, Chairman of DFM said in a statement.
In 2014, Amlak completed the restructuring of its Dh10 billion balance sheet, which allowed it to create a solid foundation for its recovery and future growth.
Under that restructuring, Amlak took certain impairments on its real estate investment portfolio.
The company also termed out its short-term facilities into a 12-year fixed profit facility. As part of the deal, an appropriate security package was also granted to financiers.
The company has paid Dh2.8 billion to its financiers under the restructuring package.
“The Steering Committee worked closely with the senior management of the Company throughout the restructuring period, evaluating a number of alternative solutions before reaching a balanced and amicable restructuring package aimed at protecting all stakeholders as well as the Dubai financial market and economy,” Sultan Bin Saeed Al Mansouri, UAE Minister of Economy and the Chairman of the Committee to Assess the Condition of some Public Shareholding Companies of the UAE.
“The completion of this important restructuring is a clear example of the Government and private sector working successfully together to achieve common goals,” Mansouri added.
Long term value:
“We continue to strive to deliver long term value for our shareholders and we fully intend to adhere to our commitments with our financiers as part of the restructuring arrangements agreed in November 2014,” Arif Al Harmi, managing director of Amlak Finance said.
The company recorded a net profit attributable to its equity holders of Dh59 million in 2014 after the completion of a restructuring process in November as it disclosed its results for the first time in six years.
This compares with a net profit attributable to equity holders of Dh240 million in 2008.
