Arabtec Holding says that it is in talks over a possible merger of its construction business with Trojan Holding
Dubai-based contracting giant Arabtec Holding said on Tuesday that it is in talks over a possible merger of its construction business with Trojan Holding.
Arabtec said in a filing to Dubai Financial Market that it has commenced a review of the possibility of a merger with the Abu Dhabi-based construction firm.
It added that in the event of an agreement being reached, a contract will be signed to detail the terms.
Arabtec said it has yet to appoint advisors for the deal.
Arabtec Holding last month recorded a net profit of AED58 million on revenue of AED4.2 billion for the first half of 2019.
The company said total revenue declined by 12.4 percent and net profit fell by 48.8 percent compared to the same period last year.
It said this reduction was mainly attributed to a decrease in awards in the construction sector in H1 in addition to a number of legacy projects completing through 2019.
Arabtec added that its backlog remained strong at AED14 billion despite a decline in new awards during the first half of 2019.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.