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BRIEF-Dana Gas Buys Back $133 Mln Sukuk Of 4% Nile Delta Sukuk Ltd Certificates

  • 17 March, 2019

March 17 (Reuters) - DANA GAS DANA.AD :

* SAYS BOUGHT BACK $133 MILLION SUKUK AND SEEKS APPROVAL AT GENERAL MEETING FOR A 5.5 FILS DIVIDEND AND SHARES BUYBACK PROGRAM

* IN CONNECTION WITH DANA GAS’S 4% NILE DELTA SUKUK LTD CERTIFICATES COMPANY HAS NOW BOUGHT BACK A TOTAL OF $133 MILLION SUKUK

* SAYS THE BUYBACK HAS REDUCED SIZE OF THE SUKUK FROM $530 MILLION TO $397 MILLION AND WAS ACHIEVED AT AN AVERAGE PRICE OF 92.1 CENTS

* SAYS CO HAS NOW SATISFIED COMMITMENT TO BUYBACK C. $100 MILLION OF SUKUK FOLLOWING CONSENSUAL RESTRUCTURING OF THE SUKUK IN 2018

* SAYS CO MET THRESHOLD AMOUNT OF OUTSTANDING SUKUK WHICH ALLOWS TO CONTINUE TO PAY SUKUK PROFIT RATE AT 4% PA RATHER THAN INCREASE TO 6% PA

* WILL SAVE TOTAL $21 MILLION BY BUYING BACK $133 MILLION OF SUKUK IN MARKET BELOW PAR AND BY FUTURE PROFIT RATES SAVINGS ON THOSE BOUGHT BACK SUKUK

* SAYS IN ADDITION, BY MAINTAINING PROFIT RATE AT 4% PA COMPANY WILL MAKE A FURTHER SAVING OF $8 MILLION

* SAYS TOTAL SAVING IS THEREFORE EXPECTED TO BE $29 MILLION, WHICH IS IN ADDITION TO SAVING OF $35 MILLION PER ANNUM ACHIEVED AT TIME OF RESTRUCTURING

* SAYS COMPANY WILL CONTINUE TO ACT OPPORTUNISTICALLY WITH REGARD TO FURTHER SUKUK BUYBACK

* SAYS CO WILL SEEK AGM PERMISSION TO REPURCHASE UP TO C. 690 MILLION OF DANA GAS SHARES ON ABU DHABI EXCHANGE

* SAYS BOARD BELIEVES CO IS CURRENTLY UNDERVALUED AND THAT A SHARE BUYBACK PROGRAM REPRESENTS A WAY OF ENHANCING SHAREHOLDER VALUE

Source: (https://tinyurl.com/yyff37v9) Further company coverage: DANA.AD

((Reuters.Briefs@thomsonreuters.com;))