UAE jeweler Damas’ major shareholders eye share sale

The largest shareholders of Middle East jeweler Damas International have appointed a financial adviser ahead of a potential sale of some of their shares, the firm said in a regulatory filing on Wednesday. The three Abdullah brothers - Tawfique Abdullah, Tawhid Abdullah and Tamjid Abdullah - are aiming to sell the shares for no less than $0.45 each, the statement said. Damas shares closed on Monday at $0.23 on the Nasdaq Dubai. Following the initial public offering of Damas in 2008, the holding of the three amounted to between 51-53.1 percent combined, according to bourse data. Damas was forced into a restructuring in October 2009 after it was found that the three brothers -- who were chairman, managing director and deputy managing director respectively at the time of its listing in July 2008 -- had made unauthorized withdrawals worth 614 million dirhams ($167.17 million). A cascade agreement, whereby the three would repay the owed amount over an agreed period through asset sales, was signed in May. A debt restructuring worth $872 million was signed with its 25 lenders, including Barclays and BNP Paribas, in March. Damas is primarily involved in the business of trading in gold and gold jewelery, diamond jewelery, pearls, watches, silver and precious stones on a wholesale and retail basis.