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Du purchases 10% stake in Khazana Data Centre.

Dubai: Du has purchased a 10 per cent stake in Khazna Data Centre owned by Mubadala for Dh57.5 million, the telecom operator said on the Dubai stock exchange's website.

Mubadala is the whole shareholder of Technology Holding Company (THC) which in turn owns 100 per cent of the share capital of Khazna.

The operator bought the stake depending on funding requirements set out in a plan related to the construction of a data center.

"Mubadala's ICT unit team has been in talks with du management in relation to the share sale agreement and shareholder agreement to be entered into between du and THC," the statement said.

The shareholder agreement provides that du will be required to fund Khanza through capital calls.

"In accordance with the agreements, Du has the right to appoint one director to the board," the statement said.

Du has been giving top priority on data centres in the last two to three years to offer faster internet speeds in the region.

In February, 2013, Du has extended its managed collocation services contract with Injazat Data Systems for a further three years.

In November last year, Du and California's Equinix formed an alliance to open an $80 million data centre in Dubai.

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Publication:Gulf News (United Arab Emirates)
Geographic Code:7UNIT
Date:Jun 5, 2013
Words:221
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