Mubadala could offload part of its stake in telecom operator du: Abu Dhabi sovereign wealth fund Mubadala Investment is reportedly looking to float at least a portion of its USD 1 bn stake in Dubai-listed Emirates Integrated Telecommunications Company (du) on the DFM, Bloomberg reports, citing people it says are familiar with the matter.

Refresher: The fund offloaded a 10% stake in du to Emirates Investment Authority (EIA) back in 2019 for USD 630 mn, retaining 10% ownership through its subsidiary Mamoura Diversified Global Holding. EIA is currently du’s largest shareholder.

What we know: The fund reportedly enlisted Emirates NBD, First Abu Dhabi Bank and Goldman Sachs to advise on the potential transaction, though the size and timing of the sale remain under wraps.

Du’s share price has been on the rise: The telecom operator’s share price rose 0.25% to AED 8.12 apiece on yesterday’s close, up nearly 40% from June 2019 when Mubadala sold down its position to EIA.

Strong financials + record high dividends: Du’s net income was up 49.10% y-o-y to AED2.5 bn last year, while its revenues were up 7.30% to AED 14.6 bn. The firm also recently approved a AED 0.34 per share dividend for 2H 2024, bringing total dividends to AED 0.54 per share for the year, representing 54% of the nominal share value, its highest-ever dividend distribution, according to the business news service.

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