DIC has mandated Barclays (>> Barclays PLC) to explore the options of the possible divestment, the people said on Thursday.

Altai's, around 80 percent owned by DIC with a stake also held by Blackstone (>> The Blackstone Group L.P.) unit GSO Capital Partners, has earnings before interest, tax, depreciation and amortisation (EBITDA) of around $100 million (66.37 million pounds), DIC Chief Executive David Smoot had said last year, without giving an expected valuation for the firm.

Listed peers trade at an average of 6.8 times their earnings. If valued at a similar multiple, Altai's could bring up to roughly $700 million in a potential sale.

Last year DIC, part of Dubai Holding, the personal investment vehicle of the emirate's ruler, Sheikh Mohammed bin Rashid al-Maktoum, sold German packaging group Mauser for 1.2 billion euros to private equity firm Clayton Dubilier & Rice.

The process of grooming both Altai's, a former unit of Alcoa (>> Alcoa Inc), and British engineering aerospace group Doncasters for a sale began last summer and deals with respective buyers are expected to be clinched within 18 months, Smoot had said at the time.

DIC, Altai's, Barclays and Blackstone declined to comment.

(Reporting by Arno Schuetze; Editing by Jonathan Gould)

Stocks treated in this article : Alcoa Inc, The Blackstone Group L.P., Barclays PLC