- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 05:29 06:48 12:14 15:11 17:33 18:52
Arabtec yesterday said the due diligence date for its $1.7 billion (Dh6.24bn) merger with Aabar Investments had been extended to April 16, in a move that will encourage investors that the deal will progress.
"Because of the enormity of the task at hand and the limited time frame, both parties agreed to amend the subscription agreement and the term sheet to extend the due diligence date to midnight April 16 2010," the UAE's largest contractor by market value said in a statement on the bourse website.
Under the agreement, Abu Dhabi's Aabar in January had agreed to acquire a 70 per cent stake in Arabtec in a deal valued at about $1.7bn. Earlier in February, Arabtec's Chief Financial Officer said the deal was on track with a possible closure in March.
"I think the news is encouraging as it shows the deal is live," said Ali Khan, Managing Director at Arqaam Capital in Dubai.
"Delays in due diligence can be a common occurrence, however some words of encouragement from Aabar would be welcomed as well," he added.
Shares of Arabtec were down one per cent, while Aabar was flat.
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