Dubai Holding Looking to Raise $1 Billion from Telecom Stakes Sales
Published on: 14th Apr 2014
Note -- this news article is more than a year old.
The Dubai government could raise around USD1 billion by selling two stakes in telecoms companies, as it seeks to pay down debt.
Dubai Holding, which is owned by the ruler of Dubai, is one of a string of government linked companies that collectively face debt repayments, or refinancing of USD50 billion over the next three years.
Dubai Holding's subsidiary, Emirates International Telecommunications has put its 26% stake in Axiom Telecom, a mobile phone retailer up for sale. It is also reportedly looking for a buyer for its 35% stake in Tunisie Telecom.
The Axiom Telecom stake is estimated to be worth USD300 million
JP Morgan, in a research note said that it has valued the Tunisie Telecom stake at USD650 million, a sharp decline on the USD2.25 billion that it paid for the stake in 2006.
J.P. Morgan analyst Zafar Nazim said that he expects the sale to be completed in the next 6 to 12 months.
Last September, South Korea based Korea Telecom (KT) confirmed that it was interested in buying the Tunisie Telecom, although it hasn't commented on the matter since then.