Wednesday, Nov 04, 2009
DUBAI (Zawya Dow Jones)--Dubai jewelry retailer Damas International Ltd. (DAMAS.DIF) said Wednesday it reached a deal with the Abdulla brothers to repay $165 million within 18 months after a family member and former chief executive resigned because of "unauthorized transactions."
The Abdulla brothers will repay $55 million within 6 months and the full amount within in 18 months, according to a statement posted on the Web site of Nasdaq Dubai, where the stock is listed.
The brothers have provided a list of assets available for liquidation, including real-estate, under the settlement agreement, and also pledged 350 million shares in the company if the deal is broken, the statement said.
Damas accepted in October the resignation of Tawhid Mohammed Taher Abdulla as its chief executive after details of "unauthorized transactions" initially estimated to be worth $165 million emerged.
The family-controlled jewelry firm with origins that date back to 1907, raised $270 million in an initial public offering on the Dubai International Financial Exchange in July 2008. The exchange was the predecessor of Nasdaq Dubai.
In July, the group said it will form a partnership with India's Gitanjali Gems Ltd to tap demand in the world's largest gold market.
The company posted a net profit of 226.91 million U.A.E. dirhams ($62 million) for the 15-month-period ended March 31. It changed its financial year end to March 31, from Dec. 31, due to market volatility.
-By Summer Said, Dow Jones Newswires; +9714-364-4965; summer.said@dowjones.com
Copyright (c) 2009 Dow Jones & Co.
(END) Dow Jones Newswires
04-11-09 1453GMT
