UAE Jeweller Damas' Major Shareholders Eye Share Sale

UAE Jeweller Damas’ Major Shareholders Eye Share Sale

The largest shareholders of Middle East jeweller Damas International have appointed a financial adviser ahead of a potential sale of some of their shares, the firm said in a regulatory filing on Wednesday.

January 4, 2012 9:24 by Reuters

The three Abdullah brothers – Tawfique Abdullah, Tawhid Abdullah and Tamjid Abdullah – are aiming to sell the shares for no less than $0.45 each, the statement said.

Damas shares closed on Monday at $0.23 on the Nasdaq Dubai.

Following the initial public offering of Damas in 2008, the holding of the three amounted to between 51-53.1 percent combined, according to bourse data.

Damas was forced into a restructuring in October 2009 after it was found that the three brothers – who were chairman, managing director and deputy managing director respectively at the time of its listing in July 2008 – had made unauthorised withdrawals worth 614 million dirhams ($167.17 million).

A cascade agreement, whereby the three would repay the owed amount over an agreed period through asset sales, was signed in May.

A debt restructuring worth $872 million was signed with its 25 lenders, including Barclays and BNP Paribas , in March.

Damas is primarily involved in the business of trading in gold and gold jewellery, diamond jewellery, pearls, watches, silver and precious stones on a wholesale and retail basis. (Reporting by David French; Editing by Praveen Menon)