Arabtec confirms Aabar’s stake

Dubai-based construction major Arabtec Holdings has clarified this morning that the Abu Dhabi-based fund Aabar Investments holds more than 20 per cent stake in the company.

In a statement posted on the Dubai Financial Market (DFM) website this morning, the company rejected claims by a section of local media that Aabar had increased its stake in the company to 53 per cent, but confirmed that Aabar’s stake in Arabtec stood at 20.76 per cent as of May 10, 2012.

It has been common knowledge that Aabar had been of late accumulating shares in Arabtec, and according to previous filings, owned a 10.45 per cent in Arabtec as of April-end.

According to a Reuters report yesterday citing an unnamed DFM official, Aabar Investments has raised its stake in Arabtec Holding to 53 per cent, effectively taking control of Dubai’s largest builder after a failed $1.7 billion bid two years ago.

Arabtec shares, which have soared 94 per cent year-to-date, have slumped more than 11 per cent in the previous two sessions on these news reports amid fears the company may delist and minority shareholders’ interests be overlooked.

After the clarification issued by Arabtec, its share price this morning stood at Dh2.85, up 2.88 per cent over yesterday’s closing price of Dh2.76.

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