Qatar's Mannai leads Damas bid A consortium led by Qatar's Mannai Corporation has agreed to make an offer to acquire Damas, valuing the Dubai-based jewellery retailer at $445m and aiming to build a controlling stake and take the company private. The bid, which has been approved by the board but needs shareholder approval next month, looks set to bring a close to a turbulent two-and-a-half years for Damas, which began when the retailer revealed that its main shareholders had been misusing company funds. Mannai, a conglomerate controlled by a member of Qatar's ruling family, and the Egyptian investment bank EFG-Hermes are bidding 45 cents per share in a deal that would leave them with 66 per cent and 19 per cent of the company respectively. Damas" controlling shareholders, the Abdullah brothers - Tawfique, Tamjid and Tawhid - would reinvest proceeds from the sale of their 52 per cent stake to retain a 15 per cent stake in the company, via an earlier agreement with creditors. As per the terms of a $872m restructuring deal, the remaining $165m due to the brothers from the transaction will be used towards the repayment of $169m that they owe the company, as well as the $327m owed to bank creditors. In March 2010, a Dubai regulator fined the brothers $700,000, ruling that they had broken regulations and owed the company $99.4m and two tonnes of gold. Mannai and EFG-Hermes are ideal partners for Damas to enable the company to begin the next chapter of its business growth, said Anan Fakhreddin, Damas chief executive, recommending shareholders to accept the bid. The consortium, which will seek to delist the stock if it acquires more than 75 per cent of the shares, has already secured agreement for the deal from 77.8 per cent of shareholders. Damas is listed on the Nasdaq Dubai, the emirate's international exchange located in the Dubai International Financial Centre. As it only needs 75 per cent for the deal to go through, the consortium expects the bid to become an unconditional offer within two weeks of the publication of the bid document, which will be posted no later than April 18. The sale price represents a 45 per cent premium to the closing price of the stock on January 9. The stock was trading at 41 cents on Wednesday morning. If it receives 90 per cent agreement, Mannai says it will exercise its legal right to buy the remaining shares on the same terms. Damas was advised by investment bank Nomura.