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Tue 12 Jan 2010 01:41 PM

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Arabtec defends disclosures on Aabar stake deal

Firm says it complied with transparency rules after shares rose 30% in weeks prior to deal.

Dubai's Arabtec said it had a "full commitment to disclosure" to authorities after its shares jumped 30 percent in the two weeks before Abu Dhabi's Aabar Investments' purchased a 70 percent stake.

Arabtec said it had confirmed to the Securities and Commodities Authority in Abu Dhabi and the Dubai Financial Market its full commitment to disclosures in line with regulations.

In a filing on the DFM, Arabtec said it had complied with the disclosures and transparency rules on Aabar's bond conversion of Arabtec's shares.

The firm outlined its actions since rumours of the deal surfaced on December 29 and said under market rules it had not needed to inform the regulator of private negotiations as long as shareholders, board members, executives and their immediate relatives did not trade its shares.

As the shares rallied in late December, both Aabar and Arabtec released statements saying there was no truth to rumors that Aabar had purchased a stake.

On January 9, Arabtec said that Aabar was looking to finalise a deal on January 13 to acquire a 70 percent stake in the United Arab Emirates' largest contractor for $1.7bn.

Arabtec was down 0.4 percent at 0726 GMT, taking its losses to 10.4 percent since the Aabar stake sale was announced. (Reuters)

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Steven 10 years ago

I raised this issue with AB when the news broke of the proposed deal last week. Funnily enough it was rejected, though there was nothing offensive or insulting within. I mearly questioned whether there was any suspicous share dealing in the lead up to the announcement, based on the rise in shares over the previous weeks. We'll never know.