x Abu Dhabi, UAEWednesday 24 January 2018

Dubai International Capital cuts Och-Ziff stake in $50m sale

DIC, the investment arm of the Dubai Holding conglomerate, has sold part of its stake in the US hedge fund firm Och-Ziff Capital.

Dubai International Capital, the investment arm of the Dubai Holding conglomerate, has sold part of its stake in United States hedge fund firm Och-Ziff Capital for nearly $50 million, according to a regulatory filing, as the private equity firm further cuts debt by selling or reducing some of its holdings.

Dubai International Capital last week sold 4.9 million shares at $10.06 per share for a total value of $49.4 million, according to the US regulatory filing.

"We sold a small portion of our stake in order to reduce debt," said DIC's chief executive David Smoot.

After the transaction, DIC will own 33.2 million shares in Och-Ziff, which represents about 7.2 per cent of the firm's total weighted-average common stock outstanding, according to Zawya Dow Jones calculations. Before the sale, DIC owned about 8.3 per cent of the company.

DIC purchased a 9.9 per cent stake in Och-Ziff in 2007 for around $1.25 billion.

DIC was established in 2004 and quickly amassed stakes across the globe in various industries ranging from aviation to financial services. But as Dubai's meteoric rise stalled in late 2008, many of its state investment vehicles, including DIC, were forced to restructure their debts and consider asset sales to raise funds.

DIC, which last year finalised a $2.5 billion debt deal, in 2012 sold stakes in a local asset manager and Jordan Dubai Capital, while reducing its holding in Dubai-based luxury group Rivoli to 18 per cent from 40 per cent.