Govt of Abu Dhabi to buy several Aldar assets

Filed on January 14, 2011

ABU DHABI — The Government of Abu Dhabi has agreed to purchase several of Aldar’s assets which have broad value for Abu Dhabi’s economy, according to the statement issued by Department of Finance of the Government of Abu Dhabi. Furthermore, in a coordinated action, Mubadala Development Company has agreed to purchase a convertible bond of Aldar.

The government acted because it believes that the asset purchase, in conjunction with Aldar’s recognition of impairment and the convertible bond being placed with Mubadala, are measures that will help strengthen the company’s capital structure, thereby allowing Aldar to achieve its objectives, including its participation in building the economy of Abu Dhabi. Chief among these benefits, Aldar will be able to continue to focus on its construction projects that are currently underway.

This purchase is consistent with past practice whereby the government has paid private companies for the construction of projects that are important for the development of Abu Dhabi’s economy. This purchase does not signal a change of government policy towards Aldar, nor towards any other commercial enterprise. Government policy remains that broad and ongoing support will be offered exclusively to Mubadala, IPIC, TDIC, and Taqa, the statement said.

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