Dubai private equity board is dissolved

Marion Dakers
PRIVATE equity group Dubai International Capital (DIC) has confirmed its board was dissolved six months ago, allowing parent company Dubai Holdings to take over its debts of around $2.6m (£1.7bn).

The group released a statement yesterday following the news of non-executive chairman and founder Sameer Al Ansari’s resignation.

“DIC confirms that its board was dissolved in January 2010 by its parent company, Dubai Holding, in order to implement a new governance structure. DIC is currently under the direct supervision of Dubai Holding,” it said.

Al Ansari, who helped set up the group in 2004, moved to Dubai investment bank Shuaa Capital in January this year.

The group owns the Travelodge hotel chain, Alliance Medical and engineering firm Doncasters. Its debt-fuelled investment scheme at one stage managed assets worth £8.5bn.

It has asked for a three month extension on loans of $1.2bn (£830m) due later this month.

Dubai Holdings is owned by Dubai’s ruler, Sheik Mohammed bin Rashid Al Maktoum, and is thought to have its own debt pile of more than $12bn (£8.3bn).

The group said its investment and audit committees will remain in place.