Thursday, Jul 19, 2012
DUBAI (Zawya Dow Jones)--In a surprising move, Dubai's government on Thursday dissolved the existing board of Istithmar World, the investment arm of Dubai World, replacing it with that of its parent company.
Members of the current board of Dubai World headed by the chairman, Sheikh Ahmed Bin Saeed Al Maktoum, have been officially appointed to sit on the board of Istithmar World, the Dubai government's media office said in an emailed statement.
"Consequently, and following this appointment, any other previously appointed board of directors or advisory committees of Istithmar World will be dissolved with immediate effect," the statement added.
The government's directive comes only hours after Istithmar World's recently shuffled board said that the company has appointed Hamza Mustafa as its new chief executive. Andy Watson, the managing director of Dubai World, had been the chief executive, according to Istithmar's website.
It wasn't immediately clear if this would affect the new CEO's appointment.
Dubai World, a government-controlled conglomerate, completely owns Istithmar World, according to Zawya.com.
A senior government official, who declined to be identified, told Zawya Dow Jones that the government's move comes with the approval of Dubai's ruler and is part of its strategy to consolidate its assets.
Istithmar has a large portfolio built up during the boom in credit and asset prices that preceded the financial crisis. It owns real estate in New York and London and stakes in numerous private companies, among other holdings. Dubai World, its parent, completed a $25 billion debt restructuring last year.
Write to Leila Hatoum at Leila.hatoum@dowjones.com
(END) Dow Jones Newswires
19-07-12 1716GMT
