Drake and Scull to declare value of claims from previous management 'in due course'

Drake and Scull said that it has no exposure to embattled private equity firm Abraaj Capital.
Drake and Scull to declare value of claims from previous management 'in due course'
Drake and Scull is continuing an investigation into violations by its previous management and declared them to UAE authorities, the company has said in a statement to the Dubai Financial Market (DFM).
By Bernd Debusmann Jr
Mon 02 Jul 2018 11:16 AM

Drake and Scull is continuing an investigation into violations by its previous management and declared them to UAE authorities, the company has said in a statement to the Dubai Financial Market (DFM).

The statement follows a similar one made on June 6.

"We would like to reiterate that the company completed the investigation and has delivered all the violations of the previous management to the designated authorities in the UAE," the statement noted.

"The violations are currently under consideration and investigation, and the company will subsequently declare the value of the required claims from the previous management in due course.”

On June 28, Drake and Scull International (DSI) accounted for more than a third of the AED 357 million traded on the Dubai Financial Market (DFM), with the contractors share prices rebounding after falling 30 percent in the previous three trading sessions.

"The company confirmed there is no material information affecting the recent trading on the company's shares," it said.

"The company would like to reiterate that operational progress on current projects is on track and the company further confirms its ability to secure new projects in the civil and MEP sectors across key regional markets."

The statement added that the share price performance over several days was caused by margin calls by financial institutions.

"[These margin calls] instigated the sale of DSI shares held by investors in accordance with previous agreements concluded between the two parties,” the statement noted.

Lastly, the statement confirmed that Drake and Scull has no exposure to embattled private equity firm Abraaj Capital.

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