Saturday, Jun 25, 2011
(this item was originally published on Thursday)
DUBAI (Zawya Dow Jones)--Emirates International Telecommunications, or EIT, the communications investment arm of Dubai Holding, said Thursday it sold part of its stake in Axiom, the mobile handset retailer and distributor.
EIT sold 14% of its Axiom stake but will retain 26% in the Dubai-based company, it said in an emailed statement.
Axiom, which shelved plans for an initial public offering late last year, earlier in June sold a 35% stake to Qatari-based Mannai Corp. Other existing shareholders sold portions of their Axiom investment as a result of the Mannai deal and remain investors, according to the EIT statement.
EIT, which holds investments in seven telecommunications companies including Emirates Integrated Telcommunications Co., better known as Du (DU.DFM), acquired its Axiom stake in 2005.
"As an investment company we also have a responsibility to achieve target returns on our investments, and the divestment of part of our holding in Axiom from 40% to 26% allows us to do this at an attractive valuation, thus providing our shareholders with the returns in line with our investment strategy," said EIT's chief executive officer, Deepak Padmanabhan, in the statement.
-By Nicolas Parasie, Dow Jones Newswires; +9714 446-1681; nicolas.parasie@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
25-06-11 0815GMT
