Dubai Holding could raise almost $1 billion from the sale of its minority stakes in Tunisie Telecom and Axiom Telecom, according to a report from Reuters, which cited a research note from US investment bank, J.P. Morgan.
Emirates International Telecommunications LLC (EIT), a unit of Dubai Holding put its 26% stake in mobile phone retailer Axiom Telecom and 35% stake in Tunisie Telecom on sale last month, sources told Reuters in June.
In a credit research note dated July 4, JP Morgan valued the Tunisie Telecom stake at $650 million and the Axiom Telecom stake at $300 million. EIT bought the Tunisie Telecom stake from the Tunisian government for $2.25 billion in 2006, according to Reuters.
Citigroup Inc is advising EIT on the sale of Axiom stake, while Credit Suisse has been hired to help sell the Tunisie Telecom stake, the sources told Reuters. The research note added that the appointment of advisers by Dubai Holding “increased the likelihood” of a sale being completed.