Saudi REITs surge after oversubscription

Updated 29 May 2017
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Saudi REITs surge after oversubscription

DUBAI: The Tadawul All Share Index (TASI) climbed 0.6 percent on Monday with real estate investment trusts (REITs) accounting for three of the top four percentage gainers after Saudi Fransi Capital said an offer of units in its new Taleem REIT this month was 890 percent subscribed, indicating strong demand for REITs.
Petrochemical shares were strong with Saudi Kayan gaining 1.3 percent, although small producer Nama Chemicals, which had plunged its 10 percent daily limit on Sunday, slid a further 1.6 percent.
The Dubai index added 0.7 percent. The four most active stocks were worth less than 1 dirham each, with Union Properties, the most heavily traded stock, gaining 2.4 percent.
Amusement park operator DXB Entertainments (DXBE), whose slide this year has weighed heavily on the Dubai market, edged up 0.5 percent after it said chief executive Raed Kajoor Al-Nuaimi had been appointed CEO of a new entity that will manage development projects for Dubai Holding and Meraas Holding. Al-Nuaimi will remain CEO of DXBE until a new chief is appointed, the company said without elaborating.
Loss-making builder Drake & Scull gained 1.5 percent after banking sources told Reuters about its recovery plan, including its projection that earnings before interest, taxes, depreciation and amortization will turn positive this year.
Qatar’s index edged down 0.1 percent but Qatar First Bank, the most heavily traded stock, climbed 5.8 percent. In the last several days, it has rebounded from record lows in unusually heavy trade.
In Kuwait, logistics giant Agility climbed 2.3 percent to 0.706 dinar, after a 6.2 percent surge on Sunday. The company said at the end of last week that it had agreed to pay $95 million in cash to settle a civil lawsuit accusing it of defrauding the US military on food supply contracts. The deal allows it to pursue US government contracts again.
SICO Bahrain called the resolution of the US case a major positive and upgraded the stock to a “buy” with a target price of 0.85 dinar.


Etihad proposes to invest in Jet Airways at 49% discount

Updated 16 January 2019
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Etihad proposes to invest in Jet Airways at 49% discount

  • The 25-year-old Indian airline has been roiled by financial difficulties, racking up a pile of dues to pilots, lessors and vendors
  • Jet will not be able to continue funding operations beyond the next week and Etihad is willing to inject $35 million if some conditions are met

Etihad Airways has offered to pick up shares of debt-laden Indian carrier Jet Airways Ltd. at a 49 percent discount and to immediately release $35 million after certain conditions are met, CNBC-TV18 reported on Wednesday.
Shares of Jet Airways, in which Etihad already owns a 24 percent stake, tumbled as much as 7.5 percent to 271.75 rupees ($3.83) in their biggest intraday drop since early December.
The Abu Dhabi carrier has offered 150 rupees for each Jet share, CNBC-TV18 said, citing a letter from Etihad’s CEO.
Tony Douglas has written to the State Bank of India (SBI) , Jet’s biggest lender, on the restructuring plan for the Indian airline, the report added.
The 25-year-old Indian airline has been roiled by financial difficulties, racking up a pile of dues to pilots, lessors and vendors, at a time when intense pricing competition, a weak rupee and rising fuel costs are weighing on the broader airline sector in the country.
Jet will not be able to continue funding operations beyond the next week and Etihad is willing to inject $35 million if some conditions are met, the CNBC-TV18 report cited Douglas as saying in his letter.
Jet and Etihad representatives are due to meet in Mumbai with lenders, led by SBI, on Wednesday to discuss the restructuring proposal that involves Etihad increasing its stake, a source with knowledge of the matter told Reuters on condition of anonymity.
Etihad wants Jet’s founder and Chairman, 69-year-old Naresh Goyal to step down from the board and his stake to be slashed to 22 percent from 51 percent, according to CNBC-TV18.
Goyal’s penchant for control, according to people who have worked with him, has emerged as a major obstacle as the airline tries to negotiate a rescue deal, Reuters reported last month.
Etihad is also seeking an exemption from the market regulator on preference pricing and open offer guidelines to invest more for the bailout, the report added.
Under India’s capital markets regulations, Etihad is required to make an open offer to shareholders for a majority of the shares once its stake goes past 25 percent, unless it obtains a rare exemption from the market regulator.
India Ministry of Civil Aviation Secretary R N Choubey on Wednesday told reporters that the aviation ministry had not yet received an official request from Jet and Etihad for an exemption from an open offer.
Jet and Etihad were not immediately available for comment.