Dubai Group selling Shuaa stake, other assets in 2016

Firm obliged to divest holdings in EFG Hermes and Bank Muscat, chief executive tells reporters
Dubai Group selling Shuaa stake, other assets in 2016
Fadel Al Ali, chief executive of Dubai Holding.
By Reuters
Tue 24 May 2016 01:50 PM

Dubai Group is in the process of selling its stake in Shuaa Capital, the chief executive of Dubai Group's parent firm said on Tuesday.

The firm was also obliged to divest its holdings in EFG Hermes and Bank Muscat this year, said Fadel Al Ali, chief executive of Dubai Holding.

Asked about Dubai Group's 48.4 per cent stake in Dubai investment bank Shuaa, Al Ali told reporters: "We are in the sales process as an owner." He declined to comment further about Shuaa.

Dubai Group completed a drawn-out restructuring of its $10 billion debt pile in January 2014, with banks extending repayment deadlines on loans so that the group could be given time to sell its assets to raise cash needed to fund the payments.

Asked about its stakes in Egyptian investment bank EFG Hermes and Bank Muscat, Oman's largest lender, Ali said these assets would be sold in 2016, as agreed as part of the restructuring. He declined to comment further.

Dubai Group holds 11.8 per cent of EFG Hermes and 12.8 per cent of Bank Muscat, according to Thomson Reuters data.

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