Tuesday, Feb 12, 2013
DUBAI (Zawya Dow Jones)--Dubai International Capital, a part of the personal investment vehicle of the emirate's ruler, sold part of its stake in U.S. hedge fund firm Och-Ziff Capital for nearly $50 million, according to a regulatory filing, as the private equity firm further cuts debt by selling or reducing some of its holdings.
Dubai International Capital last week sold 4.9 million shares at $10.06 per share for a total value of $49.4 million, according to the U.S. regulatory filing.
"We sold a small portion of our stake in order to reduce debt," said DIC's Chief Executive David Smoot.
After the transaction, DIC will own 33.2 million shares in Och-Ziff, which represents about 7.2% of the firm's total weighted-average common stock outstanding, according to Zawya Dow Jones calculations. Before the sale, DIC owned about 8.3% of the company.
DIC purchased a 9.9% stake in Och-Ziff in 2007 for around $1.25 billion.
DIC was established in 2004 and quickly amassed stakes across the globe in various industries ranging from aviation to financial services. But as Dubai's meteoric rise stalled in late 2008, many of its state investment vehicles, including DIC, were forced to restructure their debts and consider asset sales to raise funds.
DIC, which last year finalized a $2.5 billion debt deal, in 2012 sold stakes in a local asset manager and Jordan Dubai Capital, while reducing its holding in Dubai-based luxury group Rivoli to 18% from 40%.
Write to Nicolas Parasie at nicolas.parasie@dowjones.com
(Asa Fitch contributed to this item.)
Copyright (c) 2013 Dow Jones & Co.
(END) Dow Jones Newswires
12-02-13 0900GMT
