Dubai Holding could earn around US$1 billion by selling its minority shares in two telecom firms. J.P. Morgan stated an analysis through a research note. This was said to be a plan by state-linked corporations. Selling properties would allow the company to pay the emirate's liability pile.
Dubai Holding, owned by the leader of Dubai, was one of the many state-linked corporations that aimed to recover from 2009's asset collapse. The conglomerate was supposed to pay US$50 billion over the next three years.
Emirates International Telecommunications LLC, Dubai Holding's unit, put its 26% share in Axiom Telecom, cellphone retailer. On the other hand, its 35% share was bought by Tunisie Telecom.
J.P. Morgan reported that the Tunisie Telecom share was worth US$650 million. Conversely, the Axiom Telecom share was worth US$300 million.
"Although we have always expected DUBAIH (Dubai Holding) to sell these non-core stakes, management in the past has been vague about timing," Zafar Nazim, J.P. Morgan analyst, reported in the note. "Appointment of advisers increases the likelihood of the transaction getting completed, potentially in the next 6-12 months."
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