Jan 4, 2012
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UAE jeweller Damas' major shareholders eye share sale

Jan 4, 2012

DUBAI - The largest shareholders of Middle East jeweller Damas International have appointed a financial adviser ahead of a potential sale of some of their shares, the firm said in a regulatory filing on Wednesday.


The three Abdullah brothers - Tawfique Abdullah, Tawhid Abdullah and Tamjid Abdullah - are aiming to sell the shares for no less than $0.45 each, the statement said.

Damas shares closed on Monday at $0.23 on the Nasdaq Dubai.

Following the initial public offering of Damas in 2008, the holding of the three amounted to between 51-53.1 percent combined, according to bourse data.

Damas was forced into a restructuring in October 2009 after it was found that the three brothers - who were chairman, managing director and deputy managing director respectively at the time of its listing in July 2008 - had made unauthorised withdrawals worth 614 million dirhams ($167.17 million).

A cascade agreement, whereby the three would repay the owed amount over an agreed period through asset sales, was signed in May.

A debt restructuring worth $872 million was signed with its 25 lenders, including Barclays and BNP Paribas , in March.

Damas is primarily involved in the business of trading in gold and gold jewellery, diamond jewellery, pearls, watches, silver and precious stones on a wholesale and retail basis. ($1 = 3.6730 UAE dirhams) (Reporting by David French; Editing by Praveen Menon)

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