Mannai Corp. from the Gulf state of Qatar plans to buy Dubai-based Damas Jewelry, Gulf News reported Wednesday.
Mannai's move comes after Damas' founders, the three brothers Tawhid AbdullaH, Tawfique Abdullah and Tamjid Abdullah, decided a week ago to sell a part of their stake. The news triggered a rally in Damas shares, which are listed at Dubai's international stock exchange NASDAQ Dubai.
According to the report, Mannai has secured commitments of some 59 percent in Damas, and the Abdullah brothers would be willing to accept the offer if they get 0.45 U.S. dollars per share.
Damas, a well-known Arab jewelry brand running 450 shops in malls in the Middle East, hit the headlines in November 2009, when an embezzlement scandal was revealed.
The Dubai Financial Services Authority (DFSA), which controls and regulates the NASDAQ Dubai, then banned the Abdullah brothers from the board of Damas for 10 years after it was proven that they made unauthorized transactions piling up to 165 million U.S. dollars.