Dubai investment fund buys into Sony

26 November 2007

Mumbai: Dubai International Capital (DIC), an investment company owned by the ruler of the United Arab Emirates, Sheikh Mohammed bin Rashid Al Maktoum, has acquired a substantial stake in Japanese electronics giant Sony Corporation.

The stake was bought through DIC''s $2 billion Gulf Arab Global Strategic Equities Fund.

DIC spokesman said the company made a "substantial" investment in Sony but declined to disclose details about the size of the stake. Sony also declined to disclose the size of the acquisition. However, the Dubai fund is estimated to have taken less than a 5 per cent stake, the ceiling above which the acquirer has to make a public disclosure under Japan''s securities laws.

A three per cent stake in Sony would cost about $1.5 billion (£724million) at its current share price.

This is the first time the Dubai fund has invested in Japan and reflects a wider trend of oil-rich Gulf states trying to diversify their investments.

"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," said Sameer al-Ansari, chairman and CEO of Dubai International Capital.