Qatar's Mannai Corporation is mulling making a cash offer for Damas International, the Dubai jewellery retailer, according to reports. Mannai, a retailer of consumer goods and automobiles, secured commitments on 58.79% of Damas shares, media reports said quoting the Doha-based company's statement.
The Abdullah brothers, the founders of Damas, and other shareholders agreed "to accept that offer at a price of $0.45 per Damas share, provided that an announcement of a firm intention to make the offer is made on or prior to April 20, 2012," it said.
Mannai said it might make the bid for Damas with one or more investors, without identifying them. "There can be no guarantee that any offer will ultimately be made for Damas nor as to the terms on which any offer might be made," it said.
The Abdullah brothers appointed a financial adviser to sell some of their stake in the company for no less than 45 cents a share, Damas said last week.
Damas shares soared 133% the past month to 35 cents yesterday, the highest since October 2009. An offer of 45 cents a share will value the company at $445mn.