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Dubai International Capital

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Dubai International Capital
Company typeSubsidiary (International investment arm)
IndustryDiversified Investments
FoundedOctober 2004
FounderSheikh Mohammed bin Rashid Al Maktoum
Headquarters
Dubai
,
United Arab Emirates
Key people
David Smoot
(CEO)
Websitewww.dubaiic.com

Dubai International Capital (DIC) is the international investment arm of Dubai Holding, a global conglomerate and sovereign wealth fund of the government of Dubai and its ruling family. DIC invests private funds on behalf of Dubai Holding and several large third-party investors around the world with a mandate to build a portfolio of internationally diversified assets.[citation needed]

DIC, which was founded in 2004, invests in public and private equity through three divisions:

  • Private Equity: Invests in mid-cap companies in Europe and North America with a focus on secondary buy-outs that include Travelodge,[1] Merlin Entertainments,[2] Doncasters,[3] Mauser,[4] Alliance Medical[5] and Almatis.[6]
  • Emerging Markets: Manages a broad investment program across the Middle East and North Africa region, including LBOs, funds and co-investments, infrastructure, growth and development capital
  • Public Equities: Focused on investment in Fortune 500 companies through its DFSA regulated US$1.5 billion Global Strategic Equities Fund. The fund has invested in global leaders such as Sony[7] and EADS.[8]

Holdings

DIC's investments across its divisions include:

Private Equity:

  • The Tussauds Group - purchased in 2005 from Charterhouse Capital Partners for £800 million ($1.5 billion). Subsequently, sold in March 2007 to Merlin Entertainments for £1.025bn, though DIC now has 18% in the combined company.[9] The remaining stock DIC held in the combined company was sold in 2010.
  • Doncasters Group Ltd - In May 2006, DIC acquired Doncasters Group Ltd. for £700 million. Doncasters is a British precision-engineering company with plants in Connecticut, Illinois and Georgia that make precision engineered components and systems for applications in a variety of industries.
  • Travelodge - purchased the UK budget hotel group in 2006 for £675m (1.02bn euros). Travelodge is the fastest expanding hotel chain in Europe[10]
  • Merlin Entertainments Group - In March 2007 DIC merged The Tussauds Group with Blackstone's Merlin Entertainments Group to create the second largest visitor attractions operator in the world after Disney. DIC received £1.025 bn cash and retained an 18% stake in the combined company. This stake was sold in 2010.
  • Fastentech - In May 2007 DIC-owned Doncasters acquired FastenTech for US$500m in a bolt-on acquisition from Court Square Capital. FastenTech is a leading international manufacturer of industrial and aerospace-grade fasteners and has a strong presence in the US.
  • Mauser Group - purchased the German industrial packaging company in June 2007 for €850m - one of the world's leading industrial packaging firms. Has been sold in August 2014.

Emerging Markets:

  • Jordan Dubai Capital: A US$300 million private equity fund dedicated to investments in Jordan, launched in 2005.
  • Ishraq: A US$150 million investment company focused on delivering the budget hotel concept across the Middle East, established in 2005.
  • MENA Infrastructure Fund: Launched the US$500 million MENA Infrastructure as co-Anchor with HSBC and Waha Capital in 2006. It targets investments in the infrastructure and energy sectors across the Middle East and North Africa.
  • Rivoli Group: In 2007, DIC acquired a substantial stake in the UAE-based luxury goods retailer.
  • KEF Holdings:DIC acquired a 45% stake in the leading UAE-based foundry in 2008, catering mainly to the oil and gas industry.

Public Equities:

  • Daimler AG: acquired a 2% stake for $1 billion in German carmaker Daimler, making it the company's third largest shareholder in 2005.[11] It was divested in 2007.
  • EADS: acquired a 3.12% stake for $838 million in Europe's largest aircraft and defense manufacturer and Airbus parent company.[12] Has since been sold.
  • Sony: acquired a 3% stake for $1.5 billion Has since been sold.

English Premier League Team

On a number of occasions, DIC tried to buy into Liverpool F.C., in part because DIC chief Sameer al-Ansari is an LFC fan and season ticket holder:

  • 3 December 2006: DIC and Liverpool revealed that DIC were in exclusive negotiations to potentially buy or invest in the football club[13] Liverpool later accepted an offer made by American tycoons, George Gillett and Tom Hicks[14][15][16]
  • 22 December 2007: DIC looked to invest in the club alongside Gillett/Hicks, as the club's owners suffered financial difficulties. However, Hicks later dismissed holding any talks with DIC and even DIC making a bid for his share.
  • 14 February 2008: reported that DIC have 'the outline of an agreement to purchase the Reds from George Gillett and Tom Hicks, and a deal could go through by mid-March' for a sum of around £500M.[17][18] Gillett then announced that he was willing to sell his 50% stake alone to DIC.[19]
  • 10 March 2008: Hicks announced via the Liverpool website that he has terminated further discussions with DIC. Hicks was apparently not willing to allow DIC to be involved in football decisions.[20]
  • 15 September 2008: Premier League rivals Newcastle United linked with DIC. However, DIC have stated they are not planning a fresh bid for Liverpool, nor were they in talks with any other side from England's top flight.[21]

References

  1. ^ BBC News "Dubai Firm Buys Travelodge Hotels"
  2. ^ BBC News "Dubai Firm Buys Tussauds"
  3. ^ Times Online "Dubai Bags Doncasters for £700 million"
  4. ^ Zawya Online "Dubai International Capital acquires Mauser for Dh4.25bn in major move"
  5. ^ Reuters "Dubai fund buys UK's Alliance Medical"
  6. ^ Forbes "Dubai International Capital buys German chemical maker Almatis"
  7. ^ BBC News "Dubai-run fund buys Sony shares"
  8. ^ BBC News "Dubai-run fund takes EADS stake"
  9. ^ "Tussauds firm bought in £1bn deal". BBC News. 5 March 2007. Retrieved 1 May 2010.
  10. ^ "Dubai firm buys Travelodge hotels". BBC News. 18 August 2006. Retrieved 1 May 2010.
  11. ^ AME Info "Dubai Holding entity becomes third largest shareholder in DaimlerChrysler" Archived 5 December 2008 at the Wayback Machine
  12. ^ John, Isaac. "Dubai Int'l Capital buys 3.12pc stake in EADS" Archived 26 September 2007 at the Wayback Machine , Khaleej Times Online , 2007-07-06.
  13. ^ "Reds revel in £450m takeover talk". BBC News. 4 December 2006. Retrieved 1 May 2010.
  14. ^ "Dubai International Capital ends takeover talks with Liverpool FC". Forbes.com. 31 January 2007. Archived from the original on 2 February 2007. Retrieved 10 March 2008.
  15. ^ "DIC pulls out of Liverpool deal". The Guardian. London. 31 January 2007. Retrieved 10 March 2008.
  16. ^ "Consortium pulls out of Reds bid". BBC News. 31 January 2007. Retrieved 10 March 2008.
  17. ^ "Hicks plots total control of Reds". BBC News. 4 March 2008. Retrieved 10 March 2008.
  18. ^ "Reports - Reds reject DIC bid". Sky Sports. 4 March 2008. Retrieved 10 March 2008.
  19. ^ "DIC deal not dead yet". Sky Sports. 5 March 2008. Retrieved 10 March 2008.
  20. ^ "Hicks ends talks with Dubai group". BBC News. BBC Sport. 10 March 2008. Retrieved 10 March 2008.
  21. ^ "DIC not in fresh talks". Sky Sports. 15 September 2008.
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