Dubai-based Arabtec says in talks with UBS on a possible merger of its construction business with Trojan Holding
Dubai-based contracting giant Arabtec Holding said on Tuesday that it is in talks with UBS to act as a financial advisor on a possible merger of its construction business with Trojan Holding.
Arabtec's CEO Peter Pollard said in a filing to Dubai Financial Market that it has started negotiations to appoint UBS to assist in the preliminary evaluation of the merger with the Abu Dhabi-based construction firm.
Arabtec Holding 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.
Last month, Arabtec Holding appointed Wail Farsakh, a former Dutco Balfour Beatty executive as its new group chief operating officer.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.