UAE operator du formally declared the sale of its minority stake in Khazna Data Center for AED800 million ($217.8 million) to Technology Holding Company, the IT infrastructure company’s majority shareholder.
In a statement to the Dubai stock exchange under its full name of Emirates Integrated Telecommunications Company, the operator said the sale of its 26 per cent indirect stake was expected to close by the end of the month.
The sale is set to net the company a profit of AED521 million, which it plans to book in its Q3 results.
Disposal of the stake, it noted, is part of a strategy of “pursuing data centre development through either full ownership or commercial partnerships” to accelerate its growth in the area.
The transaction was mooted in local media last week following a board meeting to approve the deal, but formally filed with the stock exchange today (15 September).
The sale comes two months after the operator announced a cost efficiency drive.
At the time, CEO Johan Dennelind said the overhead reductions were an attempt to “ease pressure” on its bottom line after the “severe negative impact on its business” caused by the Covid-19 (coronavirus) pandemic.
Among the initiatives introduced were reduced spend on marketing and “optimising” use of its current resources alongside contract renegotiations with suppliers.Subscribe to our daily newsletter Back