According to a statement released on the Nasdaq Dubai bourse on Thursday, Qatar’s Mannai Corp and Egyptian investment bank EFG Hermes assumed control of Dubai’s Damas. The announcement came 75% of the Damas’ shareholders accepted the consortium’s $445 million offer to acquire Damas.
The bidders have received acceptances representing 78.37% of Damas’s share capital for their $0.45 per share offer.
“This effectively means the consortium has now acquired control,” the statement said.
The firm’s shares almost doubled this year to $0.435, surging after Tawfique Abdullah, Tawhid Abdullah and Tamjid Abdullah- its major shareholders – said in early January they intend to sell part of their holdings.
Mannai, which also deals in oil and gas, automotive, travel, and logistics sectors, has become the majority owner of Damas, and will delist the jeweler from Nasdaq Dubai.
Mannai would hold a 66% stake in Damas while Egyptian EFG Hermes 19%, the statement added. The remaining 15% would be retained by the Abdullah brothers.
The brothers founded the jewellery business but were forced to sell it in order to restructure $872 million in debt.
Mannai made its second acquisition in the United Arab Emirates as it picked up a 35% stake in Axiom Telecom last year.