Shuaa Capital's MD Steps Down as Debt Restructuring Completes
Deal News | Dec 30, 2024 | Zawya
Shuaa Capital, a prominent investment bank listed in Dubai, sees its board's Managing Director, Ahmed AlAhmadi, stepping down following the finalization of its extensive debt restructuring process. The company has approved $116 million in mandatory convertible bonds in two tranches aimed at new investors and existing bondholders following the expiration of their current bonds. AlAhmadi, recognized for his capital optimization role, had been at the board since April, subsequent to his tenure as CEO of Al Baher Real Estate. The company adjusts to these changes, having experienced substantial losses and share price fluctuations in 2023. Nonetheless, shares have rebounded as the restructuring nears completion, notably rising to AED 0.25 with high trade volumes. Key shareholders include Direct Access Investment with a 27.2% stake. A significant agreement has been reached with lenders, notably First Abu Dhabi Bank (FAB), emphasizing the strategic significance of these moves for Shuaa Capital.
Sectors
- Financial Services
- Real Estate
Geography
- United Arab Emirates – The article discusses Shuaa Capital, a Dubai-listed entity, and involves other UAE-based financial institutions such as FAB.
Industry
- Financial Services – The article revolves around Shuaa Capital, an investment bank, navigating through debt restructuring processes.
- Real Estate – Ahmed AlAhmadi, the stepping Managing Director, held a significant position in Al Baher Real Estate, linking the real estate industry to the narrative.
Financials
- $116 million – Mandatory convertible bonds approved during Shuaa Capital's debt restructuring.
- AED 0.32 ($0.09) per share – Conversion price for the mandatory convertible bonds to equity.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Shuaa Capital | Target company | Company | Dubai-listed investment bank undergoing debt restructuring. |
| Ahmed AlAhmadi | Outgoing Managing Director | Person | Recently stepped down from Shuaa Capital's board after completing debt restructuring duties. |
| Al Baher Real Estate | Previous shareholder | Company | Company led by Ahmed AlAhmadi, previously owning shares in Shuaa Capital. |
| Direct Access Investment | Major shareholder | Company | Holds 27.2% of Shuaa Capital shares. |
| First Abu Dhabi Bank (FAB) | Senior creditor | Company | UAE's largest lender involved in loan agreements with Shuaa Capital. |
| Jassim Alseddiqi | Former CEO and largest individual shareholder | Person | Previously held prominent roles in Shuaa Capital. |