The takeover of jeweller Damas by Qatar-based conglomerate the Mannai Group and investment bank EFG Hermes is a positive indicator of the company's value but may be a disadvantage to minority shareholders, analysts said Wednesday.
The $445 million (Dh1.634 billion) deal, which will see the Qatari company and Egyptian investment bank pay around $0.45 per share, is likely to see Damas eventually taken private and de-listed from the Dubai bourse, they added, a likely negative move for company shareholders.
"The fact that such a big group is coming in to buy the company means they believe there's value there and it is higher than the price it says," said Mohammad Yasin, an Abu-Dhabi based capital markets specialist. He pointed out that the purchase price the conglomerate has agreed to is a 45 per cent premium over Damas' share price before Mannai confirmed its interest in January.
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