emirates7 - SHUAA Capital has announced that its Board of Directors has approved two tranches of Mandatory Convertible Bonds (MCBs) with a combined value of up to AED 425.5 million.
This milestone represents the culmination of SHUAA's capital optimisation strategy, reinforcing its dedication to enhancing shareholder value. The issuance of the bonds remains contingent on approvals from shareholders and regulatory authorities.
Details of the Bond Tranches
First Tranche: Valued at up to AED 150 million, this tranche will be offered to existing shareholders through a private placement. It will be mandatorily converted into shares at a price of AED 0.32 per share.
Second Tranche: Valued at up to AED 275.5 million, this tranche will be made available to holders of existing bonds issued by a SHUAA-affiliated special-purpose entity. It will follow the same conversion terms as the first tranche.
Both tranches are expected to be promptly converted into equity, demonstrating SHUAA's commitment to completing the process efficiently.
##Strategic Implications
The conversion price of AED 0.32 per share reflects SHUAA's solid growth trajectory and its improved financial position after a transformative year. This pricing highlights the company’s strengthened balance sheet and its future potential, offering an attractive opportunity for investors to join SHUAA's growth journey at a pivotal moment.
As part of SHUAA's ongoing transformation, Ahmed Al Ahmadi has concluded his tenure as Managing Director and Board Member. His contributions were instrumental in advancing the company’s capital optimisation initiatives.
Leadership Insights
Badr Al-Olama, Chairman of SHUAA Capital, remarked:
"This achievement underscores the strong foundation SHUAA has built over the years. The MCB tranches provide shareholders and investors a unique opportunity to participate in the next phase of our growth."
Wafik ben Mansour, CEO of SHUAA Capital, added:
"Approval of the MCB tranches marks a pivotal moment in SHUAA's journey to realise its full potential. We are focused on completing this process in the upcoming quarter and delivering sustainable value to our shareholders."
Future Outlook
Upon finalising its capital optimisation plan, SHUAA will embark on a new phase of growth, further consolidating its leadership position in the MENA financial markets and enhancing value creation for its shareholders.
This milestone represents the culmination of SHUAA's capital optimisation strategy, reinforcing its dedication to enhancing shareholder value. The issuance of the bonds remains contingent on approvals from shareholders and regulatory authorities.
Details of the Bond Tranches
First Tranche: Valued at up to AED 150 million, this tranche will be offered to existing shareholders through a private placement. It will be mandatorily converted into shares at a price of AED 0.32 per share.
Second Tranche: Valued at up to AED 275.5 million, this tranche will be made available to holders of existing bonds issued by a SHUAA-affiliated special-purpose entity. It will follow the same conversion terms as the first tranche.
Both tranches are expected to be promptly converted into equity, demonstrating SHUAA's commitment to completing the process efficiently.
##Strategic Implications
The conversion price of AED 0.32 per share reflects SHUAA's solid growth trajectory and its improved financial position after a transformative year. This pricing highlights the company’s strengthened balance sheet and its future potential, offering an attractive opportunity for investors to join SHUAA's growth journey at a pivotal moment.
As part of SHUAA's ongoing transformation, Ahmed Al Ahmadi has concluded his tenure as Managing Director and Board Member. His contributions were instrumental in advancing the company’s capital optimisation initiatives.
Leadership Insights
Badr Al-Olama, Chairman of SHUAA Capital, remarked:
"This achievement underscores the strong foundation SHUAA has built over the years. The MCB tranches provide shareholders and investors a unique opportunity to participate in the next phase of our growth."
Wafik ben Mansour, CEO of SHUAA Capital, added:
"Approval of the MCB tranches marks a pivotal moment in SHUAA's journey to realise its full potential. We are focused on completing this process in the upcoming quarter and delivering sustainable value to our shareholders."
Future Outlook
Upon finalising its capital optimisation plan, SHUAA will embark on a new phase of growth, further consolidating its leadership position in the MENA financial markets and enhancing value creation for its shareholders.