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Dubai: Dubai International Capital (DIC), the private equity arm of Dubai Holding, on Monday said, it "has made a substantial investment in Sony Corporation" through a subsidiary.
"NewDawn GSE Asset Management Limited, a wholly-owned subsidiary of DIC Asset Management [Dicam] and the general partner for the $2 billion Global Strategic Equities Fund [GSEF], yesterday said it has made a substantial investment in Sony Corporation [Sony], one of the world's premier consumer electronics and entertainment companies," a company statement said yesterday.
The investment is the third by GSEF in Global Fortune 500 companies following the recent purchase of substantial stakes in HSBC Holdings plc and EADS NV.
DIC did not reveal the investment size, neither the share it acquired. Dubai Holding is Dubai Government's investment arm.
Sameer Al Ansari, DIC's executive chairman and CEO, said: "Sony provides GSEF with a compelling investment case, consistent with our mandate of supporting premier global companies. Whilst the restructuring process at Sony is well advanced, the recent successful listing of Sony Financial Holdings is evidence of management's ongoing strategy of focusing on capital efficiency and cash generation. The combination of Sony's truly global brand, its leadership in product design and its global footprint will spur the business' medium term growth as it capitalises on positive underlying trends and emerging technologies."
Possible size
An earlier Reuters report said DIC might buy stakes of up to $1.5 billion in one or two publicly listed companies in Japan. A $1.5 billion investment would be equivalent of a three per cent stake in Sony, which has a market value of 5.52 trillion yen ($50.9 billion), the report said.
This is DIC's first investment in a Japanese firm.
Dubai International Capital did not disclose the size or timing of its Sony investment, but anyone who buys more than five per cent of a listed company is required to report the stake to regulators within five business days.
After the announcement, Sony shares closed up 4.6 per cent at 5,500 yen yesterday.
Profile: Global footprint
GSEF is promoted by DIC Asset Management (Dicam), the asset management subsidiary of DIC.
The fund seeks to become a leading shareholder inpre-eminent global large capitalisation stocks, while aiming to create value through long term exposure to a concentrated portfolio of undervalued companies.
NewDawn GSE Asset Management Limited, a wholly-owned subsidiary of Dicam is the General Partner for GSEF.
Dicam and NewDawn GSE Asset Management Limited are licensed and regulated by the Dubai Financial Services Authority (DFSA) and GSEF is a DIFC registered fund.
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