Dubai's DIC to sell KEF Holdings stake in $178m deal

Stake sale forms part of wider $300m deal that will see Tyco take a majority share in the steel firm
Dubai's DIC to sell KEF Holdings stake in $178m deal
DIC is a subsidiary of government-owned investment company Dubai Holding, which is currently seeking to restructure $9bn in debt.
By Joanne Bladd
Mon 21 Mar 2011 05:15 PM

Dubai International Capital signed an agreement to sell a 45 percent stake in Sharjah-based steel castings producer KEF Holdings to Tyco International for $178m, the company said Monday.

The sale is part of a wider deal that will see Tyco acquire a 75 percent equity stake in the privately-held steel company, in a deal valued at $300m in cash.

The transaction is expected to be completed in early summer, Tyco said in a separate statement.

KEF has 900 employees and is expected to generate $140m in revenue in 2011, Tyco said.

Dubai International Capital acquired the stake in KEF in September 2008 for $126m.

The firm is a subsidiary of government-owned investment company Dubai Holding, which is currently seeking to restructure $9bn in debt.

Dubai Holding is believed to be in talks to sell some of its assets to fund its debt repayments.

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