UAE operator du sells stake in data centre company

UAE operator du sells stake in data centre company

Six days after agreeing to the Dh800 million (about $218 million) deal, Emirates Integrated Telecommunications Company has reportedly formalised the sale of a 26 percent indirect stake in Khazna Data Centre to another UAE group, Technology Holding Company.

The operator, better known to its customers as du, reached the sales and purchase agreement to sell its 26 per cent indirect stake – including its interest in shareholders’ loans – through its wholly owned subsidiary EITC Investment Holding, according to a statement to the Dubai Financial Market. Technology Holding controls the remaining 74 per cent of Khazna.

Disposal of the stake, du 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.

Khazna, which has facilities in Meydan Dubai and Masdar City in Abu Dhabi, is the only dedicated commercial wholesale data centre provider in the UAE. Khazna’s two facilities allow customers to gain access to an ecosystem that includes wholesale, co-location and multi-tenant data centre services. The company counts Mubadala Investment Company as its majority shareholder. 

Local press reports indicate that the estimated Dh521m ($142 million) profit on the deal will be reflected in du’s third quarter earnings, provided the deal is completed before 30 September.

The sale comes two months after the operator announced a cost-efficiency drive. The company recently reported a 38 per cent fall in net profit for the first half of the year due to the effect on business and customers of Covid-19.

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