Tuesday 4 June 2013

Dubai sells half of Dubal to Abu Dhabi in $15bn merger with Emal raising around $4bn to help repay its debts « ArabianMoney

"Abu Dhabi sovereign wealth fund Mubadala is buying half of the Dubai-owned aluminium company Dubal based in Jebel Ali for an undisclosed sum, revealed The National newspaper today. This move is a part of a mega-merger between Dubal and Emirates Aluminium to create the world’s largest aluminium producer, Emirates Global Aluminium with a market value of $15 billion.

Mubadala will therefore pay the Investment Corporation of Dubai around $4 billion that will most probably go to pay down the debts of the Dubai Government. This is essentially a debt for equity swap. Abu Dhabi is being repaid by Dubai selling off the family silver, albeit at 2013 prices, not 2009’s which would have been much lower."

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