Arabtec said to buy electrical services unit for $45m

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Dubai-based builder Arabtec will buy the 45 percent of Emirates Falcon Electromechanical Co (EFECO) it does not already own for $45m as it expands into affordable housing projects, two sources with knowledge of the deal said.

EFECO was established in 2001 and specializes in the electro-mechanical building services sector with operations in Abu Dhabi, Doha, Amman and Riyadh.

Arabtec declined to comment.

Shareholders of Arabtec, part owned by Abu Dhabi state fund Aabar Investments, last week approved a $1.8bn capital increase plan, paving the way for its regional expansion.

The company had said previously the funds would be raised through a rights issue and debt issuances. It plans to raise the money in stages with AED2.4bn ($653m) to be raised through a rights issue before the end of June.

Arabtec, one of the builders of Dubai's famous palm islands, will use some funds from the capital increase to buy out the remaining stakes in its subsidiaries, one of the sources said.

The EFECO deal comes a month after sources told Reuters Arabtec would buy the 40 percent stake in Target Engineering it does not already own to expand its move into the oil and gas construction business.

Arabtec underwent a management shake-up last month, driven by Aabar, which saw its chief executive replaced.

Aabar, which owns stakes in companies such as commodities trader Glencore and Italian bank UniCredit, has been exerting its influence since it started buying shares in Arabtec last year.

It replaced four Arabtec board members with its own candidates and named its chairman, Kadem Abdulla al-Qubaisi, as Arabtec's chairman.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Top 40 most powerful architects in the Middle East

Top 40 most powerful architects in the Middle East

Our annual shakedown of the region's 40 most influential and...

Slumping oil won't derail $500bn Gulf infrastructure plan

Slumping oil won't derail $500bn Gulf infrastructure plan

Rich GCC nations will deploy huge reserves to maintain a breakneck...

1
Revealed: GCC's top 10 developers

Revealed: GCC's top 10 developers

The biggest players behind many of the region's most ambitious...

Most Discussed
  • 17
    Nakheel PR: The toughest job in Dubai?

    You forgot to mention the sewage pit between JLT and Jumeirah Park and the terrible landscaping in Jumeirah Park The chain link fencing they want to install... more

    Monday, 30 March 2015 9:05 AM - An Emaar Fan
  • 9
    Post traumatic stress?

    I once had a Emirates Post employee hang up on me when I asked her to repeat something. That said, the worst is my management company, Kingfield Management... more

    Sunday, 29 March 2015 6:07 PM - Sarah
  • 9
    Dubai Int'l T1 is too congested, says Indian airline boss

    The best advantage for T1 is it is in the center of the city. AI go for relocation and then notice only one way flights from India to Maqtoum Aiport will... more

    Monday, 30 March 2015 12:34 PM - abusidra