Qatar sovereign wealth fund cuts stake in Tiffany & Co

A clock is placed in front of a store of U.S. jeweller Tiffany at the Bahnhofstrasse shopping street in Zurich December 23, 2013. (REUTERS)
Updated 14 September 2017
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Qatar sovereign wealth fund cuts stake in Tiffany & Co

DUBAI: Qatar’s sovereign wealth fund Qatar Investment Authority has reduced its stake in upscale jeweller Tiffany & Co. as it rebalances its asset portfolio, according to Morgan Stanley, which managed the deal.
QIA sold 4.4 million shares in the jeweller through a block sale completed on Thursday, Morgan Stanley said in a statement, reducing QIA’s stake to 9.5 percent from 13 percent, according to Thomson Reuters data.
QIA has also recently cut its stakes in Russian energy giant Rosneft and Swiss bank Credit Suisse.
Market sources said the Tiffany share sale was valued at around $415 million.
Morgan Stanley did not give the value of the Tiffany share sale, or who bought the shares but said QIA had agreed to a 90-day lock-up.
“QIA has been a shareholder in Tiffany for over five years, and this transaction forms part of the portfolio rebalancing actions undertaken by QIA from time to time,” Morgan Stanley said.
The sale comes after QIA and Glencore agreed this month to sell part of their stakes in Rosneft.
QIA’s stake in Swiss bank Credit Suisse, one of its most prominent foreign investments, has also fallen, Reuters reported last month.
QIA has denied investor speculation it is having to cut back on overseas assets because Qatar’s economy is slowing. Last month it said it would soon announce new international investments.
Qatar’s economy has been under pressure since June 5 when Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Doha, accusing it of backing terrorism, a charge which Doha denies.
QIA has substantial cash reserves, estimated at around $300 billion, but some economists have speculated it might be called upon to support the economy.
Qatar’s government deposited billions of dollars into the banking system in June and July to help offset a pull-out of funds by banks from other Arab states due to the diplomatic crisis.


Egypt and Russia sign 50-year industrial zone agreement

Updated 2 min 5 sec ago
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Egypt and Russia sign 50-year industrial zone agreement

CAIRO: Egypt and Russia signed a 50-year agreement on Wednesday to build a sprawling industrial zone that Egypt hopes will attract up to $7 billion in investments.
The 5.25 million square meter (57 million square foot) industrial zone will be located east of Port Said in the new Suez Canal Economic Zone, a mega project launched by President Abdel Fattah El-Sisi.
The plan aims to create an international hub for manufacturers with easy access for exporting goods to African and European markets.
The construction of the first phase of the Russian industrial zone is expected to cost around $190 million, according to a statement from Egypt’s trade ministry announcing the signing of the agreement.
The statement said the new industrial zone could attract up to $7 billion in investments, but did not say how the figure was calculated.
Total trade between Egypt and Russia in 2017 amounted to $6.7 billion, state news agency MENA reported in February, with Cairo’s exports to Moscow reaching $505 million.
Egypt is on a drive to lure back investors who fled following the 2011 uprising with a slew of economic reforms and incentives the government hopes will draw fresh capital and kickstart growth.