Dubai Holding, the conglomerate owned by the ruler of Dubai,
sold a 14 percent stake in Axiom Telecom as part of Qatar Mannai Corp's stake
buy in the Dubai-based mobile phone retailer, it said on Thursday.
Axiom sold a 35 percent stake to Mannai Corp last week after
aborting an initial public offering in 2010, when it planned to list on the
Nasdaq Dubai exchange by selling up to one-third of its shares.
Dubai Holding's unit, Emirates International
Telecommunications LLC (EIT), will retain a 26 percent stake in Axiom after the
sale, it said, but did not provide a value for the deal. It said the return on
the sale was "attractive".
"It is our view that by maintaining our 26 percent
stake in Axiom, EIT can benefit from the company's continued growth," said
Deepak Padmanabhan, chief executive officer of EIT.
EIT also owns a 35 percent stake in state-controlled Tunisie
Telecom which cancelled plans for an initial public offering.
Mannai Corp, which is listed in Qatar but is not on the main
index , is active in various sectors including technology, engineering and
Dubai Holding holds a substantial portfolio of brands in the
property and hospitality sectors, organised under three main groupings: Dubai
Holding Commercial Operations Group (DHCOG), Dubai International Capital and
It is among the matrix of firms badly hit by the financial
crisis and most of its units have been in discussion with banks to extend
liabilities and restructure debt.
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