Dubai International Capital sells 45% stake in KEF Holdings

Dubai: Dubai International Capital, the private equity investment arm of Dubai Holding, said it will sell its 45 per cent stake in UAE-based KEF Holdings to Tyco International, provider of security, fire protection and flow control products and services.

DIC said it has signed a definitive agreement to this effect.

KEF is a fully integrated valve manufacturer and one of the leading providers of steel castings to the oil and gas, chemical, mining and power industries. DIC acquired a 45 per cent stake in KEF in September 2008 for $126 million (Dh462.7 million). It has agreed to sell this stake for $178 million, which amounts to a substantial profit for DIC, alongside a partial exit by KEF's founder, Faizal Kottikollon.

Successful strategy

David Smoot, Chief Executive Officer of Dubai International Capital said: "The growth and international expansion that KEF has experienced under our ownership demonstrates the success of our strategy of supporting our portfolio companies on a financial and operational level. Our exit strategy continues to be based on the aim of realising maximum value for our assets at the right time and this was a very attractive transaction. We would like to thank KEF's Founder Faizal Kottikollon for being a fantastic business partner and working together with us to create a world class company".

KEF has integrated its casting operations to include valve manufacturing for the oil and gas sector.