Dubai’s DIC sells alumina products maker Almatis

Dubai International Capital, the private equity arm of Dubai Holding, has announced the sale of alumina products maker Almatis to Turkey-based pension fund Oyak.

DIC did not disclose the value of the deal but previous reports have speculated that Almatis could fetch $750m in a potential sale. Officials at DIC were hoping to receive a higher price, Reuters reported quoting industry sources.

But post the deal, DIC CEO David Smoot said that the company was “pleased with the outcome” of Almatis’ sale.

Almatis, which specialises in the manufacture and supply of alumina products, was purchased by DIC in 2007 for $1.2bn from Rhone Capital and Teachers’ Private Capital, the private investment arm of the Ontario Teachers’ Pension Plan.

However, the ensuing market meltdown forced Dubai government-owned firms such as DIC – which is part of Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum’s investment vehicle – into unsustainable debts.

DIC, which completed a $2.5bn debt restructuring deal in 2012, has since been divesting a number of its assets to repay its dues.

Last year, it sold off the German packaging company Mauser for $1.72bn. DIC also divested its stake in Holiday Inn Express in Manama.

It is now reportedly looking to sell Doncaster, a British aerospace firm but a deal is yet to be announced.

Discussions to find the right buyers for both Doncasters and Almatis had begun last year. Smoot said during an event in 2014 that a deal for both the firms would be in place this year.

Aside from repaying its debt, cash from these asset sales could also be used to fund some of Dubai Holding’s mega projects, officials have said previously.