Drake & Scull plans to acquire three firms
Post-listing and subject to board approval, Drake & Scull International (DSI) is seeking to acquire three companies in Qatar, Kuwait and Saudi Arabia.
It is also in the process of signing up two letters of intent for IWP projects in Sudan and Libya.
DSI has finally announced March 16, 2009 as the date of its listing on the Dubai Financial Market (DFM) against its originally expected date around end-2008.
The company is a UAE-based mechanical, electrical and plumbing (MEP) contracting, infrastructure, water and power (IWP) and civil contracting service provider.
DSI's Chief Executive and Vice-Chairman, Khaldoun Tabari, said the listing will enable the company to become "a key player in the contracting industry due to its strong financial position and focused growth strategy" and "the main focus of our strategy is to expand across the Middle East and North Africa region".
Zeina Tabari, DSI Chief Corporate Affairs Officer at DSI said, "We are very rich in capital. This is the time to pick up companies and acquire new businesses."
So after getting the go-ahead from its board, DSI is in the process of acquiring three new companies in Qatar, Kuwait and Saudi Arabia. "They are right now under evaluation by third-party companies. After final board approval, we will acquire these companies sometime after the third or Q4 of this year," she added.
Additional strategy focuses on the niche IWP sector and its division in Dubai that operates in the Mena region "is being very aggressive in finding work", she said. "They have won jobs in Sudan and are working on a project in Libya (in LoI stage). It is a niche market. District cooling plants, power plants and infrastructure have great potential in an area where the population is increasing and there are very few players in the market," added Tabari. She said that the contract amounts will be revealed in two weeks.
DSI is currently working on 35 projects across the region with a total value in excess of Dh5 billion. 'This strong financial position has been greatly aided by DSI announcing two new contracts in the first quarter of 2009' said Tabari.
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