Arabtec defends Aabar disclosures

The percentage by which Arabtec stock fell on the DFM yesterday. On January 9, Arabtec said that Aabar was looking to finalise a deal to acquire a 70 per cent stake in Arabtec. (REUTERS)

Arabtec Holding said it had a "full commitment to disclosure" to authorities after its shares jumped 30 per cent in the two weeks before Abu Dhabi-based Aabar Investments' purchased a 70 per cent stake.

Arabtec said it had confirmed to the Securities and Commodities Authority in Abu Dhabi and the Dubai Financial Market its full commitment to disclosures in line with regulations.

In a filing on the DFM, Arabtec said it had complied with the disclosures and transparency rules on Aabar's bond conversion of Arabtec's shares.

The company outlined its actions since rumours of the deal surfaced on December 29 and said under market rules it had not needed to inform the market regulator of private negotiations as long as shareholders, board members, executives and their immediate relatives did not trade its shares.

As the shares rallied in late December, both Aabar and Arabtec released statements saying there was no truth to rumours that Aabar had purchased a stake.

On January 9, Arabtec said that Aabar was looking to finalise a deal on January 13 to acquire a 70 per cent stake in the UAE's largest contractor for $1.7 billion (Dh6.2bn).

Arabtec fell five per cent on the Dubai Financial Market (DFM) yesterday with a loss of 13 fils to close at Dh2.47. The counter transacted 1,323 deals of 54.17 million shares.

 

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