Dubai: Abu Dhabi-based Aldar Properties is fully committed to maintain its listing, the company said yesterday, moving to quash market speculation that it may delist after a government investment firm raised its stake in the property developer through a recent bond conversion.
"Following the recent market speculation, Aldar Properties would like to confirm that it is categorically not undertaking nor is it planning to undertake a delisting of its shares from the Abu Dhabi Securities Exchange," the company said in a statement posted on the Abu Dhabi bourse website.
Shares dive
Aldar shares rose 1.2 per cent on Thursday, after two people familiar with the matter told Zawya Dow Jones the previous day that the company has no plans to delist.
The stock had lost 18 per cent in value over the last eight sessions, mostly on speculation of a possible delisting, precipitated by a recent bond conversion that gives government-controlled Mubadala Dev-elopment Co a 49 per cent stake in the company.
Aldar, in a statement posted on the Abu Dhabi bourse website earlier this month, said it would convert bonds worth Dh2.106 billion at a conversion price of Dh1.75 and allot 1.203 billion shares in the property firm to its shareholder Mubadala.
Speculation about a possible Aldar delisting has emerged in the past too, especially after the company had to be bailed out by the emirate's government as it struggled to recover from the global financial crisis in 2009, which led to a 50 per cent slump in property prices in Abu Dhabi according to some estimates.
Some market participants say a Mubadala stake hike is dilutive to minority shareholders and that fears of an "IPIC-Aabar" like scenario will remain an overhang on the stock.
Aabar Investments delisted last year, after majority shareholder government-owned IPIC bought out minority shareholders.
