Dubai-based construction giant Arabtec has confirmed that it has hired New York-based investment bank Moelis & Co to advise on a new restructuring plan.
The company, which last year embarked on a three-phase roadmap to stabilise and prepare the business for growth, said one of the strategic objectives for 2018, Prepare, is to continue to strengthen its balance sheet, including the refinancing of debt to provide a sustainable platform for continued growth.
"Moelis & Co have recently been appointed to advise and assist Arabtec with debt financial modelling, structuring options and engagement with finance providers," Arabtec said in a filing to Dubai Financial Market.
The company said it achieved the first major milestone raising AED1.5 billion through a rights issue and has now achieved six consecutive quarters of profitability supported by positive cash from operating activities and a reduction in net debt.
The company's profits reached AED113 million ($30.76 million) in the first half of 2017, up 97 percent from the same time period in 2017.
Total revenue in H1 2018 was AED4.8 billion, a 13 percent year-on-year increase.
Moelis also worked with Arabtec two years ago to study options for Arabtec’s capital restructuring.For all the latest banking and finance 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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