Aldar said in a filing to the emirate's stock market that
its board will meet Thursday to discuss the proposals in preparation for a
possible shareholder vote. It gave few details.
Among the topics up for discussion is the conversion into
shares of existing convertible bonds previously issued to state-run investment
firm Mubadala Development Co. - a move that would effectively boost the
government's equity stake in Aldar.
A spokeswoman declined to comment further.
Chet Riley, an analyst at Nomura Securities in Dubai,
said conversion of the Mubadala bonds could raise the government's stake to 44
percent, up from 38 percent directly or indirectly owned now.
Mubadala, one of several funds Abu Dhabi uses to invest
its oil wealth, declined to comment.
Aldar was set up in 2004 to accelerate real estate growth
in the oil-rich emirate, which neighbors Dubai and serves as the capital of the
United Arab Emirates. It spearheaded development of massive projects, including
the unfinished Al-Raha beachfront community and the Yas Island project that
hosts the emirate's Forumla One Grand Prix.
Like state-linked property companies in neighboring
Dubai, it borrowed heavily to fund its growth and fell on hard times when the
global economy faltered.
Aldar early last year sold $2.5 billion of assets,
including the futuristic Formula One race track, to the Abu Dhabi government to
raise cash.
Bank of America Merrill Lynch analyst Abdelrali El
Jattari estimated in November the company needed $2.67 billion of new funding
by this year to survive, saying it had a "critical funding problem."
Days later, Aldar reported a third-quarter loss of nearly $200 million.
Meanwhile, Dubai builder Arabtec said its board will call
a shareholders meeting to seek approval for a capital raise through a rights
issue and sale of five-year convertible debt.
The largest builder in the United Arab Emirates by market
value, said on Tuesday it will call an extraordinary shareholders meeting to
consider an issue of 398.67 million shares at 1 dirhams a share to existing
shareholders and sell $150 million worth convertible bonds.
The company's board of directors will meet on Jan. 16,
it said in a statement to the Abu
Dhabi bourse.
Arabtec plans to use the proceeds to fund its expansion
plans and increase working capital, the statement said.
Arabtec, which is bidding for $8.17 billion of work
outside its local markets, may look at new funding sources for its expansion
plans, its chief financial officer told the Reuters Middle East Investment
Summit in Dubai in October.
The company is expanding overseas to diversify its portfolio away from Dubai's
once-booming property sector which has been hit hard by the global financial
crisis as developers slow or cancel projects and jobs are slashed.
Property prices in Dubai have been under pressure since
late last year, when the financial crisis and a slump in oil prices ended a
six-year economic boom in the Gulf region.
Earlier in the month, Arabtec's Chief Executive Riad
Kamal was handed a trading ban by the country's regulator, said he sold shares
prior to the announcement of projects in May last year as part of his portfolio
reshuffle.
