Fund bought the shares from former Arabtec CEO Hasan Ismaik, who abruptly resigned in June
Abu Dhabi state fund Aabar Investments raised its stake
in Dubai-listed construction firm Arabtec to 34.93 percent from 18.94 percent
with an off-market trade on Tuesday, the bourse said in a statement.
The trade, which made Aabar the biggest shareholder
in Arabtec, was done at a price of AED5 per share, compared to the stock's
closing market price of AED4.26.
Aabar bought the shares from former Arabtec chief
executive Hasan Ismaik, who abruptly resigned in June after differences of
opinion with Aabar. The stake held by Ismaik and companies related to him has
now dropped to 11.8 percent, the bourse said.
The sale appears to reduce a major source of
uncertainty for Arabtec, one of the region's biggest construction firms, which
is involved in projects including a $40 billion plan to build one million homes
Its share price soared to a record high of AED7.74 in May after deep-pocketed Aabar increased its involvement with Arabtec
and steered billions of dollars of business its way.
But the stock then plunged as low as AED2.35
in July, dragging down the entire stock market, after Aabar sold part of its
stake and Ismaik's resignation caused investors to fear the Abu Dhabi fund
might cut its support of Arabtec.
Aabar's decision to rebuild its holding in Arabtec
is now likely to be taken as a sign that it will use its resources to continue
developing the construction firm as a top regional player.
After Ismaik resigned, he held weeks of talks with
Aabar on selling part of his stake; in late August he told Reuters that he
wanted over AED5 per share in any deal. He has not said what he will do
with his remaining stake in Arabtec.
Finally the Arabtec team can get on with it...well done Aabar!