By: Mahmoud Gamal
Dubai – Mubasher: It seems that the negotiations between Dana Gas and holders of the disputed $700 million sukuk have reached an impasse after a year of litigation in both the UAE and the UK courts.
Since the beginning of 2018, Dana Gas’ stock dropped 4% to AED 0.78, with a total market capitalisation loss of around AED 211 million.
Ongoing litigations between both rivals does not serve their best interests and UAE-based energy producer is likely to incur grave losses if any settlement mandates the full payment of the sukuk in question, said financial analyst at Mena Corp Issam Kassabieh.
Both sides are ready to reach a compromise solution, which may be considered a positive sign by investors and provide an evidence for an imminent settlement, market analyst Ziad Al-Qamiri commented.
We cannot be pessimistic about the case’s impact on Dana, unless the negotiations went nowhere, Al-Qamiri added.
The present situation is disadvantageous for any party, so, they would be keen on compromising to reach a consensual agreement, the analyst concluded.
Translated by: Muhammad Khalid
