Dubai Holding Commercial Cancels Offer to Buy Back Notes

  • Company offered to buy back up to 250 million pounds
  • Dubai Holding received 319.6 million pounds in valid tenders

Dubai Holding Commercial Operations Group LLC, a company controlled by the emirate’s ruler, canceled a tender to buyback as much as 250 million pounds ($359 million) of notes after bond holders asked for more than the company was willing to pay.

The company received 319.6 million pounds in valid tenders to the offer that opened March 3, it said in a statement to Nasdaq Dubai. The offer prices for the notes specified by investors were "significantly greater than planned," according to the statement.

The company set a minimum purchase price of 99 pence on the pound of the nominal value for the 500 million pounds of 6 percent notes due 2017. The bonds closed at 101.149 pence on March 2, the day before the tender was announced.

The company, whose businesses include property development, business parks and the hotel chain Jumeirah Group, reported in February a 25 percent jump in 2015 annual profit to 5.83 billion dirhams ($1.6 billion). It said it was aiming for annual profit of 10 billion dirhams in four years.

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