Dubai market suspends Shuaa Capital shares

02 November 2008
The Dubai Financial Market (DFM) has suspended trading in the shares of Shuaa Capital because of lack of disclosure relating to a convertible bond issued by the firm.

The DFM said that trading in Shuaa shares would be suspended until the investment bank issued a statement disclosing its convertible bonds.

Last year Shuaa issued a AED1.5bn ($408m) convertible bond to Dubai Banking Group. It was scheduled to be converted to equity, giving them a 32 per cent stake in the company, on 31 October. However, this did not occur as scheduled.

The suspension of its shares caps a torrid month for Shuaa, during which it has been fined AED3.4m for manipulating the share price of DP World, and then posted a loss of AED37.1m for the first half of 2008 because of the downturn in global financial markets and exposure to failed US investment bank Lehman Brothers.

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