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UAE's e& will sell a 40% stake in Khazna, a data center company for $2.2 billion

UAE's e& will sell a 40% stake in Khazna, a data center company for $2.2 billion

UAE telecoms group e& announced on Wednesday it had agreed with artificial intelligence company G42 to sell its 40% share in Khazna Data Center Holdings, for $2.2 billion.

In a statement, the telecoms company said that this deal would generate a capital profit of $1.4 billion prior to federal royalty and corporate taxes and that the proceeds would be used to pay down its debt.

Khazna designs, builds, and operates wholesale datacenters. Separately, MGX and Silver Lake will become minority shareholders in addition to G42, the majority shareholder.

The deal is expected to be finalized by the end the first quarter.

The UAE, an oil-rich country, invests billions in AI to increase its global influence long after the oil industry has ceased.

The state-backed G42, MGX and Mubadala are the main players in this effort.

e& acquired a 40% stake in Khazna in 2022. According to the website of this company, there are nine data centers in operation and many more in construction.

e& stated in its statement that it will remain a "strategic partner" and a "major tenant" of Khazna.

The Abu Dhabi Exchange has seen a 2.8% increase in the shares of e& this year.

(source: Reuters)