Dana Gas Gains on Bets Bonds Won’t Be Converted: Abu Dhabi Mover
06 Nov 2012 08:24 GMT
 
Dana Gas PJSC (DANA) rose the most in almost a month as the fuel producer pursues a so-called standstill accord with holders of its overdue Islamic bo (more)

Dana Gas PJSC (DANA) rose the most in almost a month as the fuel producer pursues a so-called standstill accord with holders of its overdue Islamic bonds and investors bet the company's debt won't be converted into equity.

Shares of the Sharjah, United Arab Emirates-based company gained 2.5 percent, the most since Oct. 10, to 41 fils at the close in Abu Dhabi. The stock fell 4.8 percent the prior two trading days as Dana Gas failed to give details on its plans for the almost $1 billion of 7.5 percent debt that matured Oct. 31.

Dana Gas sold the convertible sukuk in 2007 with the option for investors to exchange the notes for shares at 1.926 dirhams. The stock slumped 77 percent since the end of that year, including an 8.9 percent drop in 2012, partly because the gas producer faced payment delays due to political instability in Egypt and Iraq's Kurdish region, its primary sources of revenue. Shareholders were concerned that some of the debt would be converted into equity, thereby diluting their holdings.


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