Dubai International Capital Looking to Sell Large Holdings

by on February 6, 2014 5:26 am BST

Dubai International Capital (DIC) LLC is looking for potential buyers of its three largest companies in a deal in excess of $2 billion, according to anonymous sources who had knowledge of the private information. The private-equity firm, owned by the emirate’s ruler, is partnering up with investment bank Evercore Partners Inc. to determine investor demand for the three businesses.

The three companies in question are Mauser AG (packing specialist), Almatis GmbH (aluminum manufacturer), and Doncasters Group Ltd. (aerospace engineering). Primary interest will likely come from other private-equity firms that specialize in buying companies from buyout firms, known as secondary direct deals.

Even though Evercore is working on a group sale, DIC is concurrently running an auction for Mauser AG independently. This double dealing is seeing indignation for potential buyers of Mauser AG, according to the source.

DIC’s parent company, state-owned Dubai Holding LLC, was forced to restructure its debt, sum $2.5 billion, following the financial crisis which froze credit markets and caused asset prices to decline.

DIC, which is owned by Dubai Holding LLC, one of the emirates’ three main state-controlled holding companies, was forced to reschedule its debt after the global financial crisis froze credit markets and asset prices slumped.