Arabtec vows to "protect the rights of shareholders" after CEO quits

Hasan Ismaik resigned from his posts of CEO, managing director and board member due to "personal work and investment preoccupations"

Hasan Ismaik

Hasan Ismaik

Major Dubai construction firm Arabtec on Thursday said its board had accepted the resignation of chief executive Hasan Ismaik and would protect the rights of all shareholders.

The brief statement to the Dubai bourse did not comment on the company's strategy after Ismaik's departure or what was likely to happen to his 28.85 percent stake in the firm.

Ismaik resigned suddenly on Wednesday after a tumultuous six weeks during which Arabtec's share price plunged as much as 50 percent and a major backer of the firm, Abu Dhabi state fund Aabar Investments, cut its shareholding to 18.85 percent from 21.57 percent.

In its statement on Thursday, Arabtec said Ismaik was resigning from his posts of CEO, managing director and board member because of his "personal work and investment preoccupations". It thanked him for his contribution to the company.

It also confirmed the appointment of Mohamed Al Fahim, a board member from Abu Dhabi's state-owned International Petroleum Investment Co (IPIC), the parent of Aabar, as Arabtec's acting CEO for an unspecified "temporary period".

Mohamed Abdulla Ahmed Saif Al Suwaidi was appointed as a new independent board member to replace Ismaik in that role.

Arabtec said its board "expressed its positive aspirations for a bright future and continuing to make more achievements, which aim to protect the rights of shareholders and to maintain and achieve the best interests of the Company and its shareholders and investors."

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Posted by: Ronald

Somebody should be managing the message about Arabtec a lot better than is currently being done, because it is not just the image of this firm but all Dubai-listed entities that is taking a pounding. That 50 percent could have been wiped off shareholder value, the CEO (and major shareholder) leaves suddenly and all the minorities are wondering what the hell is going on should be a warning to the regulator. Something is clearly toxic and billions are being lost. It shows a flawed system and a total lack of respect for minority shareholders.

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