Dubai: The Government of Dubai has taken a 30 per cent stake in Galadari Brothers Co, a family-owned group in the emirate that publishes the Khaleej Times, according to Dow Jones Newswires.
A court appointed by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, first restructured the group and then replced the board with a three-member temporary board, the financial news organisation said.
It quoted an October 5 memo, which said one of the members of the temporary board is Mohammad Abdul Rahim Galadari, its the group chairman.
The memo, sent to managers of 11 Galadari companies, which includes an auto dealership, three hotels and the franchise for Baskin Robbins ice cream, was signed by Sharif Khoory and Yahya Kazi, directors of the executive board of Galadari Brothers.
Dow Jones quoted sources as saying the government's 30 per cent stake replaces Galadari's debt to the government and other companies.
"This board will continue to perform its duties during the interim period, that is, until the formalities of including the Government of Dubai or any of its nominated companies joining the Galadari group with a shareholding of 30 per cent, are completed," Dow Jones said, quoting the memo. It also added that members of the Dubai government will also be represented on the new board.