Axiom sells 35pc stake to Qatar’s Mannai
Dubai, June 16, 2011
Axiom Telecom, a leading Dubai-based multi-brand distributor of mobile devices, has closed a private placement deal to sell a 35 per cent stake in the company to Mannai Corporation, a diversified business house in Qatar.
“This is another milestone in Axiom’s journey, and a strong sign of confidence in the value that Axiom has built over the years,” said Faisal Al Bannai, chief executive officer of Axiom Telecom.
“This also demonstrates the trust that our shareholders place in the strength and long term vision of the company, even after we turned down a fully subscribed IPO last year due to price.”
“Many questioned the decision then and the potential impact on the company’s image. However our shareholders supported us and we knew that if the company maintains its momentum, we will continue to have investor’s interest,” he added.
Axiom cited "market conditions and liquidity" concerns for deciding against the London listing, with offers not matching its $1 billion valuation. Axiom said the Mannai deal was done at a higher valuation, without offering further details on pricing, a Reuters report said.
"We were able to demonstrate strong results in 2011 despite not raising the capital in 2010. This additionally gave us the ability to attract the right investors and sell shares at a price higher than the IPO,” Al Bannai continued.
“This capital increase will aid our plans of further growth and expansion and boost our dominance in the region and beyond. We are happy to welcome our new shareholder Mannai Corporation and feel confident that with the support of all the shareholders, we can take the company to the next level. We have proved this in the past; our track record speaks for itself,” he concluded.
Mannai Corp, which is listed in Qatar but is not on the main index , is active in various sectors including technology, engineering and retail.– TradeArabia News Service