Abu Dhabi Financial Group, a private investment firm with $6 billion in assets under management, and two other related entities now own around 9 per cent in Dana Gas, the Sharjah-based energy company in midst of court battles over the legality of its US$700 million sukuk.
The two other entities are Goldilocks Investment Company, an Abu Dhabi investment fund controlled by ADFG, and Integrated Capital, a unit of Dubai-based investment bank Shuaa Capital in which ADFG is the largest shareholder, Goldilocks said in a statement on Wednesday.
Goldilocks said it now has a 5.21 per cent stake in Dana Gas, which confirmed the acquisition in a statement to the Abu Dhabi exchange where its shares are traded. The remainder is held by ADFG and Integrated Capital. Last year, Goldilocks said it acquired around a five per cent stake in Abu Dhabi-listed Dana Gas.
Both Dana Gas and ADFG declined to give further details about Wednesday’s disclosure.
“Goldilocks is encouraged by Dana Gas’ positive operational performance and improving financial condition,” it said in a statement. “Goldilocks looks forward to working with all stakeholders to enhance Dana Gas’ profile and to make it one of UAE’s successful and profitable oil & gas companies.”
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Dana Gas is currently embroiled in legal battles after declaring in June last year its own sukuk non-Sharia compliant, citing recent developments in Islamic finance prior to the issuance maturing in October.
This is the second time that Dana Gas has sought to restructure Islamic bonds, following a deal with creditors in 2013 over a $1 billion sukuk that matured in October 2012. The company had faced cash flow issues due to outstanding payments from Egypt and the semi-autonomous Kurdish region of Iraq, where a large portion of its assets and production facilities are located.
In November, Dana Gas posted a 700 per cent increase in its third quarter net profit due to the favourable outcome of its arbitration dispute with the Kurdistan Regional Government (KRG) in August.
