Qatar-led group takes control of Dubai jeweller Damas
Source: BI-ME with Reuters , Author: Posted by BI-ME staff
Posted: Thu April 26, 2012 1:54 pm

UAE. Qatar's Mannai Corp and Egyptian investment bank EFG Hermes have taken control of Dubai's Damas after their consortium's US$445 million offer was accepted by more than 75% of the jeweller's shareholders.

The bidders have received acceptances representing 78.37% of Damas's share capital for their US$0.45 per share offer, according to a statement on the Nasdaq Dubai bourse on Thursday.

"This effectively means the consortium has now acquired control," the statement said.

Following this, five Damas board members resigned, including Executive Chairman Ibrahim Belselah. The new members include Alekh Grewal, Mannai Corp's chief executive, and Karim Moussa, a managing director in private equity at EFG Hermes.

Damas shares have nearly doubled in value this year to US$0.435, surging after its major shareholders the Abdullah brothers - Tawfique Abdullah, Tawhid Abdullah and Tamjid Abdullah - in early January said they were looking to sell some of their holdings.

Mannai, whose operations span the oil and gas, automotive, travel and logistics sectors, will become the majority owner of Damas, and will delist the jeweler from Nasdaq Dubai.

The bidders earlier stated Mannai would hold a 66% stake in Damas and EFG Hermes 19%, with the remaining 15% retained by the Abdullah brothers.

The brothers have been sidelined from the jeweler they helped found and which has been forced to restructure US$872 million in debt.

For Mannai, the deal would be its second buy in the United Arab Emirates after it snapped up a 35% stake in Axiom Telecom in 2011.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: July 4, 2015
INTERNATIONAL. Saxo Bank publishes its Q3 Outlook, warns of a false start to the Fed's rate hike cycle; a return to US$100+ oil is not expected for the foreseeable future and this should help the region to focus on attracting and building other sources of revenue.
date:Posted: July 2, 2015
UAE. AQR Asset Management Institute hosts inaugural debate on monetary policy impact on global markets; 64% of delegates felt that Quantitative Easing is highly likely to create an asset price bubble - where prices become disconnected from reality.
date:Posted: July 1, 2015
UAE. 53% of employers rank lack of work experience as affecting nationals' employability, with only 30% of GCC students having taken any work experience; According to employers, communication skills (36%) and required skills and qualifications (22%) are further challenges to retention in the private sector.
INTERNATIONAL. Saxo Bank publishes its Q3 Outlook, warns of a false start to the Fed's rate hike cycle; a return to US$100+ oil is not expected for the foreseeable future and this should help the region to focus on attracting and building other sources of revenue.
dhgate