Dubai: Goldilocks, part of the Abu Dhabi Financial Group, said it has bought a 5 per cent stake in Dana Gas.
The fund bought 350 million shares equivalent to a 5 per cent stake in Dana Gas, which announced a week earlier that the sukuk (Islamic bonds) issued by them were unlawful and unenforceable.
“Goldilocks aims to generate above-average returns while minimising the risk on capital and often takes a constructive active role to unlock value,” Gridlocks said in an emailed statement.
This could be a major investment of Goldilocks’ parent ADFG, which had bought a stake in Shuaa Capital and Gulf Finance House earlier.
Dana Gas shares had been surging on expectations that an injunction order against payments to bond-holders halted any possibility of converting bonds into equity, which could had triggered selling pressure at higher levels
Dana Gas shares jumped more than 70 per cent since June 1. Gulf News had pointed out to continuous accumulation in Dana Gas shares since last week.
“The funds could be betting that Dana could collect money sooner than everyone thought and or the possibility that Dana Gas could prevail on sukuk holders,” Sanyalaksna Manibhandu, director of Research at National Bank of Abu Dhabi Securities, said on June 15.
