• July 10th, 2013
  • Darren Kingman

Dubai Palm Island an extravegent cost and cause of Dubai's growing debt concernThis minor detail was picked up from a research piece by J.P. Morgan who claimed that the state owned Dubai Holding company could raise up to $1 billion by selling their minority stakes in two phone networks. The conglomerate are currently facing debts of up to $500 billion, largely caused by the property crash in 2009, which they are still struggling to pay off.

Part of the payoff could come in the form of the sales of their network assets, currently believed to be holdings in Axiom and Tunisie Telecom. The Axiom holding is believed to be worth in the region of $350 million, with the Tunisie Telecom holding believe to be worth $650 million. Of course, deals of this size would take some time to complete, with estimates being between 6 and 12 months. There are also fluctuations in currency that must be considered for such a purchase, likely meaning that agreements are difficult to put in place.

Although the sale won’t affect the service that current customers of either network should expect to receive, the stakes are only a drop in the ocean of debt that the EIT are required to pay, leaving the sale of others assets to be expected.

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