Oman wealth fund in talks for Dubai ONIC stake

An Omani sovereign wealth fund is in advanced talks to buy a near 42 percent stake in Oman National Investment Corp Holding (ONIC) from a unit of Dubai's ruler's personal investment firm, two sources aware of the matter said.

Oman Investment Fund, which has a regional and global investment portfolio, is in discussions to buy the stake, currently worth about US$59m, the sources said, speaking on condition of anonymity as the matter has not been made public.

"The talks are at an advanced stage and the involvement of a local fund makes it easier for Dubai Group to see the deal through," one of the sources said, declining to be identified.

Dubai Group and OIF both declined to comment. No details on the valuation for the stake was available.

Dubai Group - part of Sheikh Mohammed bin Rashid al-Maktoum's Dubai Holding conglomerate and which is restructuring US$10bn of debt - put the stake up for sale as part of a wider asset divestment plan aimed at raising money for debt repayment, sources told Reuters in December.