The United Arab Emirates’ sovereign wealth fund boosted its stake in Dubai-based telecom operator Du, snapping up a stake valued at about $630 million.
The Emirates Investment Authority bought 463.3 million shares in the phone company from Mamoura Diversified Global Holding and General Investments in a special deal, according to a statement. It represented about 10.2% of Du’s issued share capital. The statement didn’t provide a value for the deal.
“This monetization is part of our strategy of continuously evaluating our portfolio, and realizing a return on an investment at the opportune time,” said Mounir Barakat, executive director of information and communications technology at Mubadala Investment Co. The fund continues to be a “significant” equity investor in Du, he said.
Mamoura was previously known as Mubadala Development Co., the wealth fund managed by Abu Dhabi’s government. The Emirates Investment Authority held 39.9% of Du, while Mamoura owned 19.92%. The telecom operator competes with Etisalat in the UAE.
Du shares traded at 5 dirhams in Dubai on Sunday at 1:19 p.m., trimming a 1.2% gain.