Dh134m Tabreed bonds to be converted to shares

National Central Cooling Company (Tabreed) has said in a media statement that it has been notified by its bondholder, Mubadala Development Company (Mubadala), of its intention to exercise its right to convert approximately Dh134 million in mandatory convertible bonds (MCB) into shares.

The conversion of the MCB, whose issuance was approved by Tabreed’s shareholders at the annual general assembly on April 16, 2013, will result in 79.4 million new shares being issued to Mubadala and will increase Tabreed’s issued shares to approximately 738.5 million, it noted.

The conversion price is Dh1.6856 per share, which was the agreed upon price at the time of the issuance of the bonds, Tabreed added.

These MCB were issued to Mubadala in lieu of a cash dividend for fiscal year 2012. Mubadala’s decision to accept its dividend in the form of bonds rather than cash enabled Tabreed to distribute a cash dividend to its ordinary shareholders for 2012.

A resolution was circulated to Tabreed’s Board of Directors on June 9, 2014, to authorise the conversion of the bonds and the increase in the company’s issued shares.

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