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: September 30, 2014
IRAQ. The UN estimates land under IS control accounts for as much as 40% of Iraq's annual production of wheat, one of the country's most important food staples alongside barley and rice.
date:Posted: September 30, 2014
UAE. Bayt.com survey reveals that 78% consider meetings to be great for decision-making; Meetings in MENA workplaces often have agendas distributed in advance, according to 80% of respondents, and tend to start on scheduled time (according to 88%).
date:Posted: September 29, 2014
UAE. Country assessment ranked at A3 by Coface; 5% growth projected for 2014; Business climate favourable with the new companies' law improving transparency; Debt profile improves, financing needs of GREs continue.
UAE. Bayt.com survey reveals that 78% consider meetings to be great for decision-making; Meetings in MENA workplaces often have agendas distributed in advance, according to 80% of respondents, and tend to start on scheduled time (according to 88%).
dhgate