Investment Corp of Dubai (ICD), the emirate's sovereign wealth fund, on announced on Thursday it had bought a “significant” stake in Kerzner International Holdings Limited (KIHL), the hotel management company which operates the Atlantis, The Palm hotel.
Sources told Reuters the stake was around 46 percent, but did not reveal the price of the deal.
The stake will be bought from the founders, the sources added. Istithmar World, a unit of state-owned conglomerate Dubai World, already owns 25 percent of Kerzner, while Goldman Sachs and Colony also has a stake.
Among its properties, Kerzner manages the global Atlantis and One & Only resort chains; much of its business is now focused on Dubai.
It operates three resorts in Dubai, two resorts in The Bahamas, and more in Mauritius, The Maldives, Mexico, South Africa and soon, Australia.
Commenting on the acquisition, HE Mohammed Al Shaibani, executive director and CEO of ICD, said: “I am pleased to confirm that ICD has completed a major investment in KIHL. The business and its brands are synonymous with the luxury hotel industry, a sector which is of strategic importance to Dubai.”
The deal will see Al Shaibani replace KIHL’s founder Sol Kerzner as chairman.
Kerzner, who founded the company in 1994, said: “I am exceptionally proud of all that has been accomplished at Kerzner International. This is a significant milestone in my life after a long and happy career in the tourism industry and I wish the company well. I am confident that with ICD’s guidance, the company will fulfil on its upcoming expansions towards further growth and global reach.”For all the latest GCC news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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