RAK 'exploring' ceramics unit stake sale
Dubai, March 5, 2014
The ruling family of Ras Al Khaimah, one of the seven UAE emirates, is exploring a sale of its shares in Ras Al Khaimah Ceramics, a major maker of ceramic wall and floor tiles and sanitary ware, a source familiar with the matter said.
Talks on the possible sale have been going on for the past six months, the source told Reuters, declining to be named because the matter isn't public.
"There are some interested regional and international buyers but they haven't got the right price," the source said. "The RAK government wants to focus more on real estate development and dilute non-core assets."
Members of the emirate's ruling Al Qasimi family own at least 45 percent of Ras Al Khaimah Ceramics, according to Thomson Reuters data.
The source declined to give a value for the possible sale but said the ruling family wanted to sell a minimum of 25 percent of the company and conceivably all of its stake.
Ras Al Khaimah Ceramics has a market capitalisation of $781 million, according to Thomson Reuters data. The company posted a consolidated net profit of 223 million dirhams ($60.8 million) in 2012, up 8.7 percent, on revenues of 3.17 billion dirhams, down 5.1 percent.
Attempts to contact a company spokesman late on Tuesday were unsuccessful. A Ras Al Khaimah government spokesman could not immediately be reached for comment. - Reuters