Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Emirates Telecommunications Group Company (e&) has signed a “binding” agreement to divest its 40% stake in Khazna Data Centres for $2.2 billion (Dh8 billion) in a deal with Group 42 Holding Ltd (G42) and Khazna Data Center Holdings Limited, a stock market disclosure by e& said.
The telecom giant became a partial owner of Khazna, a leading provider of wholesale data centres, in 2022 when it contributed its UAE data centre portfolio in exchange for a 40% equity stake. The latest divestment underscores e&’s strategy of asset monetisation, allowing it to focus on core businesses while generating value for shareholders, the stock market disclosure said.
Despite the sale, e& will remain a strategic partner and a major tenant of Khazna, working closely to deliver AI-powered connectivity and advanced digital infrastructure solutions, the statement said.
In a separate statement, Khazna Data Centers said it has signed a definitive agreement to welcome MGX and Silver Lake as minority investors. “We thank e& for the critical role it has played in our success to date, and look forward to continued collaboration on delivering AI-grade connectivity and advanced digital infrastructure solutions,” Khazna statement said.
The deal is expected to generate a capital gain of $1.4 billion (Dh5.1 billion) before federal royalty and corporate tax, with the financial impact set to reflect in e&’s results for the first half of 2025. Proceeds from the sale will be used to reduce the Group’s debt, enhancing financial flexibility and strengthening its credit profile, the statement said.
