Dubai's du to get Dh800m from selling 26% in Khazna Data Centre
Abu Dhabi's Technology Holding Co. will have full ownership in Khazna post-deal
Dubai: The Dubai-headquartered telecom operator du will get Dh800 million from selling its 26 per cent stake in Khazna Data Centre to Abu Dhabi’s Technology Holding Company. Net profit from the deal would be about Dh521 million.
It was last week that the du management confirmed there were moves to divest its Khazna stake. Once the transaction is complete, Technology Holding will own 100 per cent in Khazna.
“The transaction is in line with the company strategy of pursuing data centre development through either full ownership or commercial partnerships and will allow it to accelerate growth in this area,” du said in a statement.
The 26 per cent in Khazna was held as an “indirect stake”, which includes du’s exposure to shareholder loans. “The transaction will result in a cash inflow of Dh800 million and a net profit estimated at Dh521 million,” the statement added.
These are to be reflected in the telecom operator’s third-quarter financials, provided the deal goes through before September 30.