Dubai International Capital LLC, the private-equity unit owned by the emirate’s ruler, is exploring a combined sale of its three largest companies in a deal worth more than $2 billion, people with knowledge of the matter said.
DIC is working with investment bank Evercore Partners Inc. (EVR) to gauge investor demand for the businesses, said the people, who asked not to be identified because the information is private. The portfolio includes majority stakes in packaging specialist Mauser AG and aluminum manufacturer Almatis GmbH of Germany as well as U.K. engineering aerospace group Doncasters Group Ltd., the people said.
The assets are drawing interest from private-equity firms that specialize in buying a group of companies from buyout firms, known as secondary direct deals, the people said.
The Dubai-based firm is exploring the portfolio sale even as it simultaneously runs an auction for Mauser independently, said the people. The parallel processes have drawn the ire of potential buyers for Mauser, according to one of the people familiar with the situation.
DIC, which is owned by Dubai Holding LLC, one of the emirates’ three main state-controlled holding companies, was forced to reschedule its debt after the global financial crisis froze credit markets and asset prices slumped.
Since the crisis, the company sold Middle East assets including stakes in hotels operator Ishraq Dubai, steel castings company KEF Holdings Ltd. and Oger Telecom Ltd.
DIC reached an agreement in April 2012 with about 20 lenders, including HSBC Holdings Plc (HSBA) and Royal Bank of Scotland Group Plc, to delay payments on $2.5 billion of debt. Lenders were to get 2 percent interest on about $2.15 billion of debt that will be extended for five years while maturities of a further $350 million was extended for three years at an unchanged contractual interest rate, DIC said at the time.
A spokesman for Evercore declined to comment. A representative for DIC didn’t immediately respond to a request for comment.