June 19, 2017 / 4:48 PM / a year ago

Abu Dhabi fund takes 5 percent stake in Dana Gas

DUBAI/ABU DHABI, June 19 (Reuters) - Goldilocks Investment Co, an open-ended equity fund which is part of Abu Dhabi Financial Group, said on Monday it had bought 5 percent of Abu Dhabi-listed gas producer Dana Gas.

The fund was launched last October as a $200 million vehicle with a strategy of taking minority stakes in companies and helping them to restructure and develop. Its brief statement did not say what it intended to do with Dana.

Dana is struggling to recover hundreds of millions of dollars in overdue payments from Egypt and Iraqi Kurdistan. Last week, it proposed a restructuring of $700 million of its Islamic bonds, arguing that the instruments had become illegal under United Arab Emirates law since they were issued.

Dana Gas’s shares jumped 66 percent this month after the company proposed the bond restructuring. Some brokers said they believed a strategic investor was building a stake.

Reporting by Tom Arnold and Stanley Carvalho; Writing by Andrew Torchia. Editing by Jane Merriman

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