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.For all the latest banking and finance 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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