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Draka increases stake in Oman Cables for $108.6mn

Draka Holding plans to increase its stake in Oman Cables Industry to nearly 51% by buying an additional 16 per cent shares for $108.6mn

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Cable, Cables, Oman, Oman cables, News

Draka Holding plans to increase its stake in Oman Cables Industry to nearly 51% by buying an additional 16 per cent shares for $108.6mn.

The Dutch company, which currently owns 34.78% of Oman Cables, has signed an agreement to increase its stake in the Omani company to approximately 51 per cent, thus gaining a majority stake, reported Oman Times.

"As per the agreement, Draka Holding will purchase an additional approximately 16 per cent of shares, for a total consideration of around $108.6mn. As per Draka Holding, this investment is considered of strategic importance to their presence in the Middle East region," Oman Cables said on Wednesday in its filing with the Muscat Securities Market.

Oman Cables said Draka Holding will purchase the additional 16% shares from a specific group of shareholders of the company. "We will update the shareholders on related information received by the company on the execution of the agreement," it added.

Draka, currently the biggest shareholder in Oman Cables, is a fully owned subsidiary of Prysmian Group, which is a world leader in the energy and telecom cables and systems industry.

Prysmian is listed on the Italian Stock Exchange. It operates in the businesses of underground and submarine cables and systems for power transmission and distribution, of special cables for applications in many different industries and of medium and low voltage cables for the construction and infrastructure sectors.

According to Oman Cables' 2014 report, Draka owned 31.2mn shares of the firm. Other major shareholders at the end of last year were Mustafa Mukhtar Ali al Lawati (with a 12.54 per cent stake) and Hussain Salman al Lawati (12.14 per cent).

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