Dubai-based Emaar Properties is talking to potential buyers of its majority
stake in Singapore-based distributor and retailer RSH, according to people
familiar with the matter. RSH, which works with brands including Zara and
Mango, operates across Asia and the Middle East.
A unit of Dubai Holding, which is looking to sell its 40 per cent stake in
Malaysia’s Bank Islam, has appointed Rothschild to seek potential buyers.
Dubai Holding is owned by the emirate’s ruler, Sheikh Mohammed bin Rashid
al-Maktoum.
Selling non-core assets
These sales processes indicate that Dubai entities in addition to the Dubai
World conglomerate are seeking to sell off better-performing, non-core
assets as the emirate seeks to reduce its US$100bn-plus in debts.
Dubai World is restructuring US$22bn in debts, and has put some of its
highest-profile assets on the block. Istithmar, the investment arm, last
week put Inchcape Shipping Services, the marine services group, up for sale.
Emaar, the Middle East’s biggest property group which is about one-third owned
by the government, has effective control of more than 60 per cent of the
shares in Singapore-listed RSH. In the year to last March, it posted S$773m
(US$543.6m) in revenues and has a market capitalisation of about US$250m.
People familiar with the matter said that Singapore’s DBS Bank was assisting
Emaar with the sale process. DBS declined to comment. RSH and Emaar also
declined to comment.
Bank Islam is one of Malaysia’s leading Shariah-compliant banks and last
October its Dubai shareholder signalled that it would consider divesting the
40 per cent stake as it refocuses on home markets. Rothschild, which
declined to comment, is believed to be in discussions to offload the stake
for several hundred million dollars.
Dubai Holdings said there had been a lot of speculation about asset sales but
“there is nothing concrete to hand”.
The Islamic banking group BIMB Holdings owns 51 per cent of Bank Islam, with
Lembaga Tabung Haji, or the Malaysian pilgrims fund, holding the remaining 9
per cent.
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