DUBAI 29 March 2018: Drake & Scull International (DSI), a regional leader in engineering and construction services, announced that it is targeting to issue a sukuk convertible into equity in Q2 2018.
On 27 March 2018, DSI Board approved plans for the issuance of convertible sukuk with an indicative value of minimum Dh450 million or the equivalent in other currencies, as private placement or public issuance to be converted to shares over a maximum period of 5 years, at a price of Dh3 per share or at a discount of 25 per cent of the market price of the share, to be determined at the time of conversion, said Wam.
The sukuk issuance is subject to regulatory and shareholders’ approval at the company’s upcoming General Assembly meeting, which is scheduled to convene in April 2018.
Rabih Abou Diwan, Investor Relations Director, DSI, stated: “The sukuk issuance comes within the framework of the strategic plan approved by the Board of Directors of the company, as a succession of the restructuring and recapitalization efforts implemented to secure the required funding for the ongoing and future projects portfolio in the region.”
The key objective is diversification of our financing; and the Sukuk offers a sharia compliant platform that is appealing and reassuring to a larger spectrum of investors, and most importantly to our shareholders.”