Dana Gas PJSC (DANA) surged the most since February after the company’s biggest shareholder said the fuel producer may reach a “reasonable resolution with investors” on $1 billion in Islamic bonds maturing next month.
The shares soared 4.9 percent, the most since Feb. 19, to 43 fils, at the close in Abu Dhabi. Dana Gas was the most traded by volume in Abu Dhabi’s benchmark ADX General Index (ADSMI) and the Bloomberg GCC 200 Index (BGCC200) of the Persian Gulf region’s top 200 equities. The stock, which lost 38 percent last year, led Abu Dhabi shares 0.2 percent higher to 2,617.49.
“The outcome may favor an upside, given the company’s solid financials and the probability of restructuring debt,” said Talal Touqan, head of research at Al Ramz Securities LLC in Abu Dhabi. “There was overshot on the downside, which makes anticipated rebounds stronger and against negative expectations.”
Crescent Petroleum Co.’s President Badr Jafar told reporters in Dubai yesterday that he is “very optimistic about the professionalism of Dana Gas management to reach a reasonable resolution with investors. Discussions are ongoing with Egypt regarding scheduling payments.” Crescent Petroleum holds a 20.1 percent stake in Dana Gas, according to data compiled by Bloomberg.
Dana Gas has appointed Deutsche Bank AG, Blackstone Group LP (BX) and Latham & Watkins LLP to advise on the sukuk. Bondholders of the Islamic debt hired London-based law firm Linklaters LLP to negotiate a restructuring, three people familiar with the matter said in May. The sukuk is secured against the company’s Egyptian assets as well as Sajaa Gas Private Ltd. and United Gas Transmissions Co., part of a venture to supply Iranian gas the United Arab Emirates that is yet to start.
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