By Staff writer
Dubai International Capital reportedly set to hire advisors on sale of UK-based engineering group
One of Britain's most advanced privately owned engineering groups looks set to be put up for sale by its Dubai-based owner for more than £1 billion ($1.56 billion), it has been reported.
According to a report by Sky News, Doncasters, which makes precision components for aircraft engines, is to be sold by Dubai International Capital (DIC).
Sky News said that investment bankers will be appointed in the coming weeks to advise on the sale.
In October, DIC's chief executive David Smoot said it should complete the sale of the two main assets remaining in its portfolio within 18 months, which will provide it with cash to cover its outstanding debt well ahead of scheduled repayment in two years.
The private equity firm, which acquired the business in 2006, is part of Dubai Holding, one of the investment groups owned by ruler Sheikh Mohammed bin Rashid al Maktoum.
The price tag that DIC will attach to Doncasters is unclear, but Sky News quoted bankers as saying that it was likely to be valued at well over £1 billion.
It said Doncasters undertook a refinancing drive last year to reduce its borrowing costs.
DIC could not be reached for comment, while Doncasters declined to comment, the report added.