Kuwait regulator orders 9 firms to delist
Dubai, February 16, 2012
Kuwait's Capital Markets Authority (CMA) has ordered nine listed companies, including the co-owner of Aston Martin, to be removed from the stock exchange.
Most firms to be delisted are investment companies that have struggled to meet debt obligations since the global financial crisis and their shares have been suspended for failing to report earnings on time.
Investment Dar, which brought half of Aston Martin for 479 million pounds ($751.7 million) in 2007, is among those to be delisted, according to a statement carried by the state news agency.
The firm secured a 1 billion dinar ($3.6 billion) debt deal with creditors in February 2011 but has not traded on the exchange since April 2009.
Investment Dar declined to comment but a spokesperson said the company would issue a statement in the coming days.
International Investment Group, which defaulted on a $200 million Islamic bond in April 2010, is another ordered to delist.
"It gives a better reflection of the index, given that most of these companies have been halted for a while and investors got used to not trading them," said Jasem al-Zeraei, head of institutional sales at NBK Capital.
"However, it's negative for the shareholders in these companies who don't have the hope anymore of these companies trading again."
A further nine investment firms were also issued with an ultimatum by the CMA to correct their financial positions by March 31 or be delisted, the statement added. - Reuters