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Dubai-listed Shuaa Capital is awaiting bond-holder votes as it attempts to carry out a “capital structure optimisation” following its rights issue announcement earlier this month.
A spokesman for the investment bank confirmed voting would be held this week by note holders of the $150 million bond issued in October 2020, which matures on Saturday.
This followed last-minute discussions between note-holders and top Shuaa executives, according to Zawya sources.
Zawya understands there were discussions with three of the bondholders, including Bahrain-based GFH Financial Group, earlier this week after they received third party advice, but a Shuaa spokesman did not disclose any information on the matter.
Shuaa confirmed in a stock market disclosure on Wednesday that its board will meet on Sunday to review developments on its capital structure optimisation.
Minutes from GFH’s Annual General Meeting (AGM) held in April 2021 showed that GFH had invested $35 million in the Shuaa Capital bond in 2020. However, GFH did not respond when asked by Zawya whether the bank would agree to Shuaa’s exchange offer terms.
Earlier this week it was reported that Shuaa had made an exchange offer to noteholders of the bond, with the offer coming during a challenging period for Shuaa Capital, which was founded in 1979.
The entity also confirmed earlier this month that it planned a rights issue to increase capital.
The largest individual shareholder, Jassim AlSeddiqi, reduced his share to less than 5% and stepped down from his role at Shuaa last month.
AlSeddiqi, who was managing director at the time, served as CEO of the company from 2019, after Shuaa’s merger with Abu Dhabi Financial Group (ADFG), of which he was also CEO.
At the time the Shuaa bond was issued in October 2020, AlSeddiqi was also chairman of GFH, but was succeeded in the role by Ghazi Al Hajeri in April 2022.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
