Drake & Scull mulls 10% shares buyback

Drake & Scull International (DSI) is considering buying back up to 10 percent of its shares, the company’s chief executive confirmed on Thursday.

The Dubai-based mechanical, engineering and plumbing (MEP) and civil contracting firm would also start operations within 30 days on projects in Libya and Jordan, Khaldoun Tabari, CEO and vice-chairman of DSI, told Arabian Business.

On the possible buyback, Tabari said one of the company’s directors had proposed the move, which would be discussed at a board meeting on Saturday.

Asked if he was happy with the performance of the company’s shares on the Dubai Financial Market (DFM), he said: “I can’t really say under the current market situation. We let the shares do the talking.”

DSI began trading on the DFM in March, with the firm’s shares currently valued at 80 fils each.

Tabari said the company’s first quarter results, to be released on Sunday, were “positive".

“We are beating our expectations and things are getting better in the UAE,” he said.

DSI will also discuss projects in the pipeline in Jordan (hotel), Libya (airport) and Thailand (residential) at the board meeting.

In March, Tabari told Arabian Business the firm would be focusing on countries which were still developing their infrastructure such as Syria, Egypt, Saudi Arabia, Libya and Qatar for future growth opportunities.

The same month, DSI became the first firm to list on the DFM this year and the exchange’s only specialist contracting company.

DSI raised about AED1.2bn ($326m) in July 2008 after offering 55 percent of its shares to the public. More than 45,600 subscribers applied for shares which were priced at AED 1 each.

The board will also be given an update on acquisitions proposed and other opportunities at the meeting, according to a statement on Dubai's bourse website.

Post-listing and board approval, Tabari said in March DSI was seeking to acquire three companies in Saudi Arabia and Qatar.

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