DUBAI, UAE - The United Arab Emirates government's sovereign wealth fund has taken a controlling interest in Dubai telco, du.
The Emirates Investment Authority, which already owned 39.9% of du, has acquired another 10.2% through the purchase of 463.3 million shares from Mamoura Diversified Global Holding and General Investments, a wealth fund managed by the Abu Dhabi government, in an off-market transaction.
The change will see the UAE authority take its holdings to a controlling interest at 50.1%.
du is one of two main telecom groups servicing the UAE, the other being Etisalat
Mamoura Diversified Global Holding and General Investments previously held 19.92% of the Dubai-based telephone network.
The value of the transaction was AED 2.3 billion (UAE Dirhams) or the equivalent of $630 million (USD).
"This monetisation is part of our strategy of continuously evaluating our portfolio, and realising a return on an investment at the opportune time," Mounir Barakat, executive director of information and communications technology at Mamoura said Monday. Barakat noted the Abu Dhabi fund remained a "significant" equity investor in du.