Arabtec Holding, Dubai's largest listed builder, said on Thursday it will acquire a stake in Depa, a day after the interior contractor's shares jumped 47 percent on a rumoured buy.
Arabtec said its board had approved the purchase of 149.6m shares in Depa - valued at US$65.8m based on Wednesday's closing share price on NASDAQ Dubai - and it would take effect on November 22.
The builder, in which Abu Dhabi investment fund Aabar owns a stake, said it was buying the shares from various investment funds. It did not disclose the price it paid for the shares.
Shares in Depa soared on Wednesday, hitting a five-month high at US$0.44. About 150m shares changed hands, which is more than what the company's shares traded in the previous two years combined.
Depa said in a statement on Wednesday that "the name of the purchaser, the size of their current stake and their intentions are unknown".
Arabtec and a consortium of Turkish and Greek firms were awarded a US$2.9bn contract in June to build a mid-field airport terminal in Abu Dhabi. In the same month, Depa and its German joint venture partner saw a US$245m contract to fit out the new Doha International Airport terminated.
Depa has been involved in a number of high-profile projects in the United Arab Emirates, including the fitting of the interior for the Burj Khalifa, the world's tallest building.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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