du to sell 26% stake in Khazna Data Centre for AED800m

du to sell 26% stake in Khazna Data Centre for AED800m

15 September 2020 | Natalie Bannerman

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Dubai-based telco du has agreed to sell its 26% stake in Khazna Data Centre to Abu Dhabi’s Technology Holding Company.

The deal worth AED800 million will leave du with net revenue of approximately AED521 million and will make Technology Holding Company, part of Abu Dhabi’s Mubadala, the sole shareholder as it currently holds 74% of Khazna, its interest in shareholder loans.

In a statement to Dubai Financial Market du said: "The company’s board has further approved the delegation to the management to conclude the transaction."

Approval was made during du’s board meeting on Tuesday 8 September and the new financial details will be reflected in the company’s third-quarter financials, as long as the deal goes through before 30th September.

The news follows a number of rumours that du was planning to diverst its interests in Khaza last week.

In 2019, Khazna entered into a joint partnership with Evoteq to develop the first-Tier III data centre facility in Sharjah, a city in the United Arab Emirates.

The data centre will enable faster digital transformation of Sharjah, and its development into a smart city and comes in response to the growing demand for data infrastructure by local and international entities.