Shuaa Capital, the GCC's leading financial services institution, has requested the Dubai Financial Market to issue 515 million new shares to Dubai Banking Group (DBG), making DBG the biggest shareholder in Shuaa.

This follows the agreement regarding the convertible bonds issued by Shuaa to Dubai Banking Group, whereby Dubai Banking Group will convert the Dh1,500 million ($408 million) convertible notes into 515 million shares, representing a 48.4 per cent stake of Shuaa Capital’s share capital.

'Total shareholders' equity will remain unchanged at Dh2.16 billion, as reported in the second quarter 2009 financial statements,' Shuaa said, adding it had received official approval of the deal.

As a result, Shuaa’s issued and paid up capital will be increased by Dh515 million to Dh1,065 million.

The new agreement represents a conversion price of Dh2.91 per share, equal to a premium of 93 per cent to the closing share price of Shuaa of Dh1.51 on 27 August 2009.

The foregoing terms are within the authority conferred by Shuaa’s shareholders in their extraordinary general meeting held in Dubai on April 15. – TradeArabia News Service