By Staff writer
Tasameem Real Estate replaces former CEO Hasan Ismaik as the second-biggest stakeholder in the Dubai-listed firm
Abu Dhabi-based Tasameem Real Estate has become the second biggest shareholder in Arabtec Holding.
The company, which is owned by Sheikh Mansour, now owns 8.29 percent of Arabtec, overtaking the company’s former CEO Hasan Ismaik as the second-biggest stakeholder in the Dubai-listed builder.
Ismaik had been the company’s second largest shareholder up until last week, with almost 12 percent stake according to Bloomberg, but following a large volume of trading in Arabtec shares on Sunday, which included two trades involving 300 million shares, the former exec is longer listed on the Dubai Financial Market’s website as one of the company’s biggest shareholders.
Arabtec has been struggling with a difficult construction industry environment as regional economies slow and governments restrain spending because of low oil prices. In its most recent earnings announcement, Arabtec reported a narrower loss in Q2 ($50.8 million) compared to a year earlier, which was its seventh straight quarterly loss.
"The direct costs are still too high, which is a problem," Sanyalaksna Manibhandu, head of research at NBAD Securities said in August. "There was a good improvement in the first quarter but that has not been sustained in second quarter."
Arabtec is aiming to break even this year and return to profit in 2017, its chairman said in April. "Unless there's improvement in the second half of the year, you'll doubt whether they'll break even this year," Manibhandu added.