Reportedly, Dubai Holding has $1.14bn loan maturing in August 2011, but more pressing is Dubai International Capital’s $1.25bn loan which matures in June 2010. According to analysts parting with stakes in listed firms is a logical option for the Dubai-based conglomerate, as the move offers a liquid financing method and the deals may fetch a premium to existing prices.
In December 2009, a unit of Dubai Holding sold a 7% stake in EFG Hermes, an Egypt-based investment bank for $120m. Dubai Group, the financial services firm of Dubai Holding, is also said to be in talks to sell its 41% stake in Oman National Investment for about $90m.
Khuram Maqsood, managing director at Emirates Capital, said: “For these companies, (Dubai Holding and affiliates) trying to sell domestic real estate assets is going to be a challenge. These organisations are having a liquidity crisis and they have debt obligations coming due in the recent future. The only way to bridge the gap for them is from asset sales.”
Joice Mathew, head of research at United Securities, said: “If Dubai Holding is trying a sale of its overseas assets, Bank Muscat is one which they can sell at a premium to current market prices. The stock is trading at a discount to valuations of its domestic peers,” reported the newspaper.
