J.P. Morgan: Dubai Holding may sell stakes in du and other telcos



Dubai Holding‘s main unit, Dubai Holding Commercial Operations Group (DHCOG) may sell its entire telecom portfolio by 2015 in order to pay back contractor liabilities, J.P. Morgan indicated in a written note.

DHCOG’s telecom portfolio includes 35 percent stake in Tunisie Telecom and a 19.5 percent stake UAE operator du. The value of the telecom holdings is worth an estimated $2 billion, J.P. Morgan analyst estimates.

The sales are expected to go toward repaying nearly $2.3 billion of DHCOG’s estimated over $3 billion in contractor liabilities. Presently, total debt has declined to about $3.6 billion from its peak of $4.45 billion in 2008, according to J.P. Morgan.

DHCOG and parent Dubai Holding are part of a matrix of firms known informally as Dubai Inc. that includes indebted conglomerate Dubai World. Dubai Inc. firms were badly battered by the financial crisis and a subsequent property collapse that plunged Dubai into a debt crisis in 2009.


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