Titan to acquire 67% stake in Dubai's Damas for $282 million

Bengaluru: Titan Company Ltd through its Dubai-based wholly-owned subsidiary Titan Holdings International FZCO has signed an agreement to acquire 67 per cent stake in Damas LLC (UAE), the holding company for Damas jewellery business in GCC countries from Mannai Corporation, the company said in a regulatory filing on Monday.

The deal value has been estimated at around $282 million (AED 1,038 million). The acquisition will be funded through a combination of debt, cash balances, and internal accruals. 

On completion of the acquisition, Titan would hold 67 per cent of the equity share capital and voting rights in Damas LLC and explore a path to acquire the balance 33 per cent stake from Mannai after December 31, 2029, subject to conditions agreed upon in the definitive document, the company said.

The completion of the proposed transaction would be subject to certain conditions precedent, customary closing adjustments, and approvals from antitrust and other regulatory authorities in certain jurisdictions as may be applicable.

This transaction is strategically significant for Titan’s jewellery business as it will facilitate the expansion across the 6 GCC countries of UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain.

Commenting on the acquisition, C K Venkataraman, Managing Director, Titan, said, “After successfully establishing Tanishq in the GCC countries and the USA, our ambition for a global jewellery play is moving to the next stage. The acquisition not only creates a significant new global opportunity for Titan, but also enhances Titan’s overall position in the jewellery market in the GCC countries and brings in multiple synergy benefits in talent, retail networks and supply chain.”

Damas Jewellery, founded in 1907, stands as West Asia’s premier jewellery retailer, with a legacy of over a century. With a network presence of 146 stores across 6 GCC countries, Damas today, houses a curated portfolio of in-house collections alongside prestigious international labels.

Alekh Grewal, Group Chief Executive Office of Mannai Corporation, said: “Mannai will continue to own a minority stake in Damas for the next 4 years as the growth plans for Damas are taken forward. It is intended that the proceeds of the sale transaction will be deployed by Mannai to strengthen its resources in support of further expansion of its core trade and IT services businesses in addition to reducing the group debt.”