Dubai International Capital Buys In To Sony

A government backed Dubai-based investment firm has today announced it has acquired a ’substantial’ holding in technology giant Sony, despite the fact that there have as of yet been no reports filed with industry regulators - a legal requirement for purchases of over 5% equity.

The investment fund Dubai International Capital refused to disclose the exact value of its investment, although it is thought to be around the 3% mark, which would set the company back a cool $1.5billion based on closing share prices today.

The significant move is the first of its kind, seeing a Dubai based investment fund entering the Japanese market for the first time as part of a wider investment strategy from the region in the wake of spiralling oil prices and growing national wealth.

Speaking today on the deal a spokesperson from the Dubai fund said that the turnaround Sony are currently experiencing under new management made them a viable option for investment, particularly in light of the floatation of its holdings subsidiary to deal more specifically in investments and long term stability strategy over the coming years.

Following the announcment today the Sony share price skyrocketed up almost 5% on the day to over $50 a share to reflect the potential for further investment in the technology giant responsible for some of the world’s most innovative tech products over the last few decades.

Meanwhile Sony is currently in the middle of a wider period of consolidation that is designed to allow it to achieve greater profitability and focus in its core consumer markets, particularly in the wake of its sales problems with the Playstation 3 games console in what has been a very competitive market over the last year.

Story link: Dubai International Capital Buys In To Sony