Dubai Banking Group will also fund all outstanding liabilities of Shuaa Capital's stock option plans, which amount to Dh176 million.
The convertible bonds have a one year maturity with an exercise price of Dh 6 per share and a coupon of 6per cent. In addition, Dubai Banking Group will retire debt worth Dh0.50 per share, hence valuing Shuaa Capital at Dh6.50. Upon maturity in October of 2008, it is envisioned that Dubai Banking Group will receive 250 million shares of Shuaa Capital representing a 32 per cent stake in the company, which would make it the single largest shareholder of Shuaa Capital. The convertible bonds carry 6 per cent interest. Upon conversion, Shuaa Capital's outstanding shares will then be increased from the current 550 million shares to 800 million shares and total shareholder's equity will rise to Dh3 billion from the current level of Dh1.522 billion.
This step is expected to create around 12,000 jobs annually for UAE nationals in 2024 and 2025
Hosts tighten grip on Day 3 of first Test against New Zealand