Sol Kerzner out as Dubai buys ‘significant’ stake in Kerzner International
THE Investment Corporation of Dubai (ICD) has bought “significant” equity interest in Kerzner International Holdings, the international developer and operator of luxury hotels and resorts, from the Kerzner family and other institutional investors.
The transaction will see ICD executive director and CEO Mohammed Al Shaibani take over as chairman of the operator from South Africa-born hotel magnate Sol Kerzner, who founded the company in 1994.
The value of the deal was not disclosed in a statement the ICD issued on Thursday.
Kerzner International Holdings operates globally under the One&Only and Atlantis brands — significantly in Dubai, with three resorts, along with two in the Bahamas and others in Mauritius, the Maldives, Mexico, South Africa and soon Australia.
Debt restructuring agreements last year saw Kerzner International Holdings handing over its Atlantis resort properties in Dubai and the Bahamas — effectively leaving it as a resort management, branding and development company.
State-run investment firm Istithmar World paid $250m to buy out Kerzner International Holdings, which had held a 50% stake in the Dubai Atlantis hotels.
Mr Shaibani said on Thursday that the Kerzner business and its brands were “synonymous with the luxury hotel industry, a sector which is of strategic importance to Dubai”.
Mr Kerzner said: “I am exceptionally proud of all that has been accomplished at Kerzner International. This is a significant milestone in my life after a long and happy career in the tourism industry and I wish the company well.
“I am confident that with ICD’s guidance, the company will fulfil on its upcoming expansions towards further growth and global reach.”
Kerzner International Holdings CEO Alan Leibman will continue to oversee the company’s expansion, including a new Atlantis resort in China and four One&Only resorts being developed around the world.
Story from Business Day
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