Dubai firm purchases stake in Sony
Dubai International Capital, an investment company owned by the ruler of this booming Persian Gulf city-state, has acquired a stake of undisclosed size in Japanese electronics and media company Sony Corp.
Sony’s U.S. shares rose 1.9% on Monday after the announcement, gaining 93 cents to $50.01.
The purchase is the latest by Middle East investors who have become more aggressive in looking for investment opportunities overseas.
United Arab Emirates-based Dubai International Capital described its investment in Sony as “substantial” in a statement posted on the company’s website, but it did not provide a specific ownership percentage.
Sony spokesman Daichi Yamafuji confirmed Dubai International Capital’s purchase but declined to provide any other details.
“It’s the other party that acquired the stake and we decline to discuss any other details such as the number of shares involved,” he said.
The chief executive of Dubai International Capital, Sameer Ansari, said the investment in Sony, which owns consumer electronics, video game and movie businesses, was “consistent with our mandate of supporting premier global companies.”
“The combination of Sony’s truly global brand, its leadership in product design and its global footprint will spur the business’ medium-term growth as it capitalizes on positive underlying trends and emerging technologies,” Ansari said in the company’s statement.
Dubai International Capital was established in 2004 and is owned by Dubai ruler Sheikh Mohammed bin Rashid Maktoum. It has made several other prominent investments this year, acquiring 9.9% of Och-Ziff Capital Management Group, a U.S.-based alternative asset manager, and 3.12% of European Aeronautic Defense & Space Co., which builds Airbus commercial planes and military aircraft. The firm also holds stakes in Daimler and British bank HSBC Holdings.
Sovereign funds in the Middle East, such as Dubai International Capital, have been building up their investments overseas recently, many of them on the back of rising oil prices that have brought the region record cash flows.
Many companies have welcomed such investments because the funds tend to be stable investors, but some countries such as the U.S. have expressed concern that their acquisitions could target sensitive industries with links to national security.
