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Dubai's Amlak to seek shareholder backing to lift six-yr trading halt

  • 25 March, 2015

By Matt Smith

DUBAI, March 25 (Reuters) - Dubai's Amlak Finance AMLK.DU will hold a shareholder meeting on April 16 to seek their approval for lifting a six-and-a-half year trading suspension on the mortgage lender's shares, according to a bourse filing on Wednesday.

If shareholders agree, the board will then seek permission from the "concerned authorities" to resume trade and determine a date to do so.

Trading in Amlak, 48 percent owned by Dubai's biggest developer Emaar Properties EMAR.DU , was halted in November 2008 as credit markets dried up and the emirate's real estate prices began a 50 percent tumble from their peak.

Various officials have previously claimed that trading would soon resume - in March 2014, the United Arab Emirates' economy minister said this would occur in the second half of that year. ID:nL5N0ML1MA

But the plan now appears more concrete - an item to approve restarting trading is included on the agenda of next month's Amlak's annual shareholder meeting, which was published on Dubai's bourse website on Wednesday.

In March, Amlak reported a 22 percent rise in attributable net annual profit for 2014 as gains from its debt restructuring offset write-downs in its property portfolio. ID:nL5N0WD19P

The company signed a $2.7 billion debt and financing restructuring deal with creditors last November after protracted negotiations. ID:nL6N0TG0XR

Amlak's meeting agenda also proposes paying additional fees to directors "for their special and additional efforts above their normal duties ... to regularise the financial situation of the company".

The shares last traded at 1.02 dirhams ($0.28) on Nov. 20, 2008, having fallen 79 percent in the preceding six months as Dubai's housing crash and the global financial crisis sent related stocks tumbling. ($1 = 3.6729 UAE dirhams)

(Editing by David French) ((matt.smith1@thomsonreuters.com; 00971506354039; Reuters Messaging: matt.smith1.thomsonreuters.com@reuters.net))

Keywords: AMLAK FINANCE STOCKS/