A Saudi private equity company is suing the three brothers who ran Damas for more than US$22 million (Dh80.8m) after accusing the jewellery giant of not paying for shares it acquired before the Dubai company went public two years ago.
The Riyadh-based private equity house filed its claim against the three Abdullah brothers, Tawfique, Tawhid and Tamjid, at the Dubai International Financial Centre (DIFC), according to documents obtained by The National.
The legal action, which had not been previously disclosed, is a further blow to the brothers as they deal with the aftermath of a Dubai Financial Services Authority (DFSA) investigation into "unauthorised transactions" that followed the company's initial public offering in 2008.
Amwal AlKhaleej alleges the Abdullah brothers agreed to buy 22,042,694 of its shares at $1 a share in an agreement dated June 16, 2008, just two weeks before Damas was scheduled to make a public offering of 25 per cent of its stock. But after the firm transferred the shares to the brothers, they did not pay the $22m owed, court documents allege.
On November 1 last year, the two sides came to an agreement where the Abdullah brothers would make a partial payment of $9.2m for 9,750 shares, the documents allege. Ammar al Khudairy, a board member of Damas and the chief executive of Amwal AlKhaleej, signed the agreement.
But the brothers did not pay, the documents allege. Amwal AlKhaleej filed the claim against the brothers in December and the brothers appointed a lawyer to represent them in January. Amwal AlKhaleej is seeking the return of its more than 22 million shares or a payment of $22m with interest, the documents say. A hearing in DIFC Courts is scheduled for April 21.
Mr al Khudairy, who has agreed to resign as a board member of Damas, could not be reached for comment yesterday. Lawyers for the Abdullah brothers and Amwal AlKhaleej declined to comment.
Amwal AlKhaleej, which was founded in 2005, was an early investor in Damas, buying an $82.5m stake in June that year. During the public offering, it sold a portion of these and now has a smaller stake in the company.
This month, Mr al Khudairy said: "You know, my number one criteria in choosing an investment is the partnership. We buy into companies - we do not buy out companies. Our typical acquisition model is to buy a significant minority, not a controlling majority, and therefore the trust and chemistry I have with the owners is crucial."
The case is among the latest examples of companies increasingly using the DIFC Courts to handle financial disputes in the centre. The Courts saw 36 cases last year, compared with nine in 2008.
Some of the staff and facilities at the DIFC Courts will be used by the special Dubai World tribunal that can hear cases from creditors against the conglomerate.
The DFSA this week ordered the Abdullah brothers to pay Dh1.101m in fines by the end of August.
They have pledged to pay back Dh606m, which the DFSA said they had used for personal investments, in instalments before May 2012.
bhope@thenational.ae
RESULTS
Bantamweight: Victor Nunes (BRA) beat Azizbek Satibaldiev (KYG). Round 1 KO
Featherweight: Izzeddin Farhan (JOR) beat Ozodbek Azimov (UZB). Round 1 rear naked choke
Middleweight: Zaakir Badat (RSA) beat Ercin Sirin (TUR). Round 1 triangle choke
Featherweight: Ali Alqaisi (JOR) beat Furkatbek Yokubov (UZB). Round 1 TKO
Featherweight: Abu Muslim Alikhanov (RUS) beat Atabek Abdimitalipov (KYG). Unanimous decision
Catchweight 74kg: Mirafzal Akhtamov (UZB) beat Marcos Costa (BRA). Split decision
Welterweight: Andre Fialho (POR) beat Sang Hoon-yu (KOR). Round 1 TKO
Lightweight: John Mitchell (IRE) beat Arbi Emiev (RUS). Round 2 RSC (deep cuts)
Middleweight: Gianni Melillo (ITA) beat Mohammed Karaki (LEB)
Welterweight: Handesson Ferreira (BRA) beat Amiran Gogoladze (GEO). Unanimous decision
Flyweight (Female): Carolina Jimenez (VEN) beat Lucrezia Ria (ITA), Round 1 rear naked choke
Welterweight: Daniel Skibinski (POL) beat Acoidan Duque (ESP). Round 3 TKO
Lightweight: Martun Mezhlumyan (ARM) beat Attila Korkmaz (TUR). Unanimous decision
Bantamweight: Ray Borg (USA) beat Jesse Arnett (CAN). Unanimous decision
Killing of Qassem Suleimani
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Company%20Profile
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Age 26
Born May 17, 1991
Height 1.80 metres
Birthplace Sydney, Australia
Residence Eastbourne, England
Plays Right-handed
WTA titles 3
Prize money US$5,761,870 (Dh21,162,343.75)
Wins / losses 312 / 181
England World Cup squad
Eoin Morgan (capt), Moeen Ali, Jofra Archer, Jonny Bairstow, Jos Buttler (wkt), Tom Curran, Liam Dawson, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, James Vince, Chris Woakes, Mark Wood
UAE currency: the story behind the money in your pockets
COMPANY%20PROFILE
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COMPANY%20PROFILE%20
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The specs
Engine: 2.9-litre twin-turbo V6
Power: 540hp at 6,500rpm
Torque: 600Nm at 2,500rpm
Transmission: Eight-speed auto
Kerb weight: 1580kg
Price: From Dh750k
On sale: via special order
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Company%20profile
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Results
5pm: Handicap (PA) Dh80,000 (Turf) 1,600m; Winner: Nadhra, Fabrice Veron (jockey), Eric Lemartinel (trainer)
5.30pm: Maiden (PA) Dh80,000 (T) 1,400m; Winner: AF Dars, Tadhg O’Shea, Ernst Oertel
6pm: Handicap (PA) Dh80,000 (T) 1,400m; Winner: AF Musannef, Tadhg O’Shea, Ernst Oertel
6.30pm: Handicap (PA) Dh80,000 (T) 1,200m; Winner: AF Taghzel, Malin Holmberg, Ernst Oertel
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 2,200m; Winner: M’Y Yaromoon, Khalifa Al Neyadi, Jesus Rosales
7.30pm: Handicap (TB) Dh100,000 (PA) 1,400m; Winner: Hakeem, Jim Crowley, Ali Rashid Al Raihe