Dubai construction firm boss to be replaced by Hasan Ismaik, statement says
Dubai-based contractor Arabtec replaced its founder and chief executive and is seeking a new finance chief, as part of a boardroom overhaul instigated by its largest shareholder, Abu Dhabi investment fund Aabar.
Arabtec also plans to raise US$1.8bn in new capital through a rights issue and convertible bond, the company said in a statement on Dubai's bourse.
Aabar has been exerting its control on Arabtec since it started building a stake last year. It had already replaced four board members with its candidates and named its chairman, Kadem Abdulla al-Qubaisi, as Arabtec's chairman.
On Wednesday, Arabtec said Chief Executive Riad Kamal resigned and was replaced by Hasan Ismaik, an active Abu Dhabi-based private investor who was made a board member last August.
The company said it is looking to hire a senior management team, including a finance chief and an operations head.
The current chief financial officer for the firm is Ziad Makhzoumi. Arabtec did not say whether he was still working there.
Arabtec, the largest listed contractor in Dubai, has benefited from Aabar's 22 percent holding, winning contracts in the oil-rich emirate of Abu Dhabi including a US$2.9bn contract to build a new airport terminal.
The company plans to raise capital through a rights issue worth AED4.8bn (US$1.31bn) and a convertible bond worth AED1.7bn.
It has previously said it was looking at such an equity-linked fundraising but canceled the plan in March 2011 because of political unrest in the region. Full-year net profit for 2012 fell to AED139.2m from AED221.1m a year ago. The company did not provide quarterly figures.