Du parent company raises foreign ownership limit to 49%

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Emirates Integrated Telecommunications Company says move is likely to increase liquidity and investment enquiries from overseas

Emirates Integrated Telecommunications Company (EITC), better known as Du, on Tuesday said it has raised its foreign ownership limit to 49 percent.

The Dubai-based telecoms major said in a filing to Dubai Financial Market that overseas shareholders’ available liquidity is expected to improve “substantially” as a result of the ownership decision.

It added that foreign investment enquiries are also likely to be “extensive in due course” in light of EITC’s 2O2O financial results

EITC attained a net income of AED1.44 billion, revenue of AED11.08 billion and a 24.1 percent growth in capital expenditure last year, the latter being the highest level of capital intensity in five years.

The income and revenue figures were down from AED12.59 billion and AED1.73 billion respectively for the previous year but the company said they showed the “resilience of its model in a difficult operating environment caused by the Covid-19 pandemic”.

The board recommended to shareholders the approval of a dividend distribution for the year 2020, of 28 fils per share, out of which 13 fils per share were paid in August as an interim dividend.

EITC was founded in 2005 as the UAE’s second licensed telecommunications provider and is 50.12 percent owned by Emirates Investment Authority, 19.7 percent by Emirates International Telecommunications, 10.06 percent by Mamoura Diversified Global Holding and the remaining by public shareholders and national companies.

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