The Dubai-headquartered telecom operator du will get AED800 million from selling its 26 percent stake in Khazna Data Centre to Abu Dhabi’s Technology Holding Company. Net revenue from the deal could be about AED521 million.
It was last week that the du management confirmed there were moves to divest its Khazna stake. Once the transaction is complete, Technology Holding will own 100 percent in Khazna.
"The transaction is in line with the company strategy of pursuing data centre development through either full ownership or commercial partnerships and will allow it to accelerate growth in this area," du said in a statement.
The 26 percent in Khazna was held as an "indirect stake", which incorporates du’s publicity to shareholder loans. "The transaction will result in a cash inflow of AED800 million and a net profit estimated at AED521 million," the statement added.
These are to be reflected in the telecom operator’s third-quarter financials, provided the deal goes through before 30th September.
News Source: http://wam.ae/en/details/1395302869980