By Staff writer
Construction giant is reportedly seeking advice from PwC to identify potential acquisition targets
Dubai-based construction giant Arabtec Holding is reportedly seeking advice to identify potential acquisition targets.
According to people with knowledge of the matter, Arabtec has turned to PwC although the global consultancy hasn’t yet been formally mandated, Bloomberg reported.
It added that Arabtec has also approached banks to discuss potential financing for a takeover.
Arabtec raised its stake in Target Engineering Construction Co. to 98 percent last year after buying almost a quarter of interior-fitting contractor Depa Ltd in 2012, Bloomberg said.
Last month, Arabtec reported a 32 percent drop in third-quarter net profit, missing analysts' estimates by a wide margin as general expenses nearly doubled from a year earlier.
The builder, in which Abu Dhabi state fund Aabar Investments owns a 34.9 percent stake, reported a profit of AED68.7 million ($18.71 million) in the three months ending September 30, down from AED100.8 million in the corresponding period of 2013.
Aabar raised its stake in Arabtec earlier this month after buying shares held by former chief executive Hassan Ismaik, who abruptly resigned in June after differences of opinion with Aabar.