Emirates NBD plans share capital hike ahead of possible acquisition

Emirates NBD said in January it had started initial strategic talks with Sberbank about a possible purchase of the Russian lender’s stake in Turkey’s Denizbank. (Reuters)
Updated 11 March 2018
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Emirates NBD plans share capital hike ahead of possible acquisition

DUBAI : Emirates NBD plans to raise its share capital by up to 7.35 billion dirhams ($2 billion) through the issuance of new shares, as Dubai’s largest lender prepares to bid for Turkey’s Denizbank.
The bank said in January it had started initial strategic talks with Sberbank about a possible purchase of the Russian lender’s stake in Turkey’s Denizbank.
The share hike, announced on Sunday, was expected to ensure the lender’s common equity tier 1 ratio did not drop below the regulated 11 percent threshold with the acquisition, said Chiradeep Ghosh, banking analyst at SICO Bahrain.
Plans for the move helped send Emirates NBD’s stock surging 12.5 percent in early trading on Sunday.
Emirates NBD currently has 5.56 billion authorized shares, according to Thomson Reuters data. The bank said it planned to issue new shares with a nominal value of 1 dirhams for a subscription price per share at no less than 10 percent discount to the prevailing market price.
It is the latest Gulf bank seeking to raise its capital in recent weeks. National Commercial Bank, Saudi Arabia’s largest lender, and Dubai Islamic Bank have both announced similar moves.
Emirates NBD’s capital increase will be discussed at a general meeting of shareholders on March 27.
The bank said is was also seeking shareholder approval for a $12.5 billion medium term note program, a $1 billion structured note program and a 1.5 billion Australian dollars debt issuance program.


India court allows Vedanta to reopen controversial plant

Updated 16 December 2018
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India court allows Vedanta to reopen controversial plant

  • The city of Thoothukudi had been rocked by long-running protests over the plant
  • Protesters say it harms the environment and the health of those living near it, claims the company has long denied

NEW DELHI: An Indian copper smelter at the centre of a police shooting that left 13 protesters dead has been granted permission to reopen by the country's environmental court.
The Sterlite plant, owned by British mining giant Vedanta Resources, was closed after the bloody police crackdown in May on protesters who say the smelter is poisoning the air and water.
Vedanta Resources, owned by Indian-born billionaire tycoon Anil Agarwal, had appealed against the plant's closure by the state government of Tamil Nadu where it is located.
The National Green Tribunal, a federal authority which rules on environmental matters, ordered Saturday that the plant in Thoothukudi city could resume operation.
Sterlite CEO P. Ramnath on Sunday welcomed the decision.
"We are happy that all those affected by the closure will get back their source of livelihood and the town of Thoothukudi will revert to normalcy," he said in a statement on Twitter.
The Tamil Nadu state government has said it will appeal the decision in India's highest court.
The city of Thoothukudi, previously known as Tuticorin, had been rocked by long-running protests over the plant, one of the largest in India.
Protesters say it harms the environment and the health of those living near it, claims the company has long denied.
The demonstrations intensified in May after Vedanta sought to double the annual capacity of the plant.
On May 22, police opened fire on thousands of protesters, killing 13 people.
The plant was shuttered by the state government in the aftermath of the shooting.
The company denies all charges and maintains that it adheres to the best environmental standards.
The federal green court ordered Vedanta to spend one billion rupees ($13.9 million) over three years to assist local communities.
But it criticised the pollution regulators in Tamil Nadu, saying they stalled the case by tying up the company in paperwork.