Dubai: Conglomerate Dubai Holding is close to selling its shareholding in the Bombay Stock Exchange to billionaire investor George Soros as it tries to manage cash flow.
Soros Fund Management is expected to pay about $40 million (Dh146.8 million) for the four-per-cent stake, valuing the exchange at $1 billion, according to the Financial Times.
A Dubai Holding spokesperson told Gulf News: "At this stage, we cannot add anything to the report." He declined to confirm or deny it.
The conglomerate is undergoing a financial restructuring after property and hospitality unit Dubai Holding Commercial Operations Group announced a loss of Dh23.5 billion in 2009 including Dh22.5 billion of impairments.
Restructuring progress
Earlier this month, it got a two-month extension on a $555 million credit facility maturing this month.
"They [Dubai Holding] are divesting certain assets and if they are getting a good rate, then they will sell," said Joe Kawkabani, a managing director at Dubai's Algebra Capital.
"The restructuring will include a whole range of assets. This is part of the strategy and not surprising at all."
Investment unit Dubai International Capital has pulled out of investment in EADS, the parent company of Airbus Industrie, Indian bank ICICI and Japanese electronics maker Sony. Last year, Dubai Group, its financial investment arm, sold 25 million shares in Egyptian investment bank EFG-Hermes Holding, raising about $114 million from its 6.5 per cent stake. It had bought the stake for $1.1 billion late in 2007.
Dubai Holding's investments include shares in multiple exchanges including the London Stock Exchange, Nordic OMX and Nasdaq.
