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Tokyo: Dubai International Capital (DIC), said it planned to invest about $5 billion in China, India and Japan over three years as a play on the rapid growth of emerging markets.
The fund's chief operating officer, Anand Krishnan, also told a news conference yesterday the fund could raise its stake in existing holdings like Sony Corp and was looking for potential investments in other Japanese shares.
Gulf investors spent $80 billion last year in overseas acquisitions, almost three times the amount they spent in 2006, according to data provider Dealogic.
Krishnan said Dubai International plans to raise its assets under management to $25-$30 billion in the next three to four years from $13 billion now, estimating that India, China and Japan could make up one-fifth to one-sixth of the total. "I would think the three countries in the next three years would take a share possibly of about $5 billion," he said.
Krishnan said the fund was searching for opportunities in Japan's auto industry and other sectors, such as entertainment, that have channels to growing demand in emerging economies.
"Clearly because of the growth in emerging markets, we believe companies having exposure to emerging markets will grow significantly as well," he said.
Options
He added that the fund would be open to raising its stake in Sony as it would with other major holdings, such as HSBC Holdings and European aerospace company EADS.
DIC said in November it had made a "substantial investment" in Sony but did not disclose the size of the stake.
"More stock in Sony? If it makes sense for us from a returns perspective and we can get it at the right pricing, absolutely. We would look at any one of the stocks that we have invested in," Krishnan said.
Focus: Emerging markets
In Singapore, Rabih Khoury, chief executive of DIC emerging markets, said Asia accounts for 30 per cent of its $2-$3 billion emerging market portfolio, but that share is expected to rise "north of 50 per cent" in three to five years.
"For DIC emerging markets, Asia is our focus in 2008," Khoury said on the sidelines of an investment conference in Singapore.
- Reuters
Toyko: Dubai International Capital (DIC), the private equity arm of Dubai Holding, has said it is looking for more opportunities in Japan.
The company took a 'substantial' stake in Sony Corp in November 2007.
DIC's chief operating officer, Anand Krishnan, said it could be interested in investing in the automobile sector in Japan.
He told a news conference in Tokyo that the company was saw opportunities among public Japanese equities.
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