Font Size

- Aa +

Tue 1 Mar 2016 09:21 AM

Font Size

- Aa +

Former Arabtec CEO buying shares for future – source

Arabtec shares soared 14.3% after exchange data showed Hasan Ismaik's stake in the Dubai-listed builder had risen

Former Arabtec CEO buying shares for future – source
Hasan Ismaik, former CEO of Arabtec Holding.

Hasan Ismaik, former chief executive of Dubai-listed builder Arabtec, has been buying shares in the company because he sees future value in them, a source close to Ismaik has said.

"He likes the company, sees value in the company's future," the source said late on Monday, declining to comment on whether Ismaik might buy more shares.

The shares soared to their daily limit on Monday, jumping 14.3 percent to 1.44 dirhams in their heaviest volume since June 2009, after exchange data showed Ismaik's stake had risen to 11.91 percent from 11.81 percent. The stock's surge helped to lift the entire Dubai market.

Ismaik, a Jordanian businessman who took the helm at Arabtec in 2013, raised his stake as high as 28.85 percent in 2014 but then quit as CEO in June that year after tensions with another major shareholder, Abu Dhabi state fund Aabar Investments.

He subsequently sold 16 percent of Arabtec to Aabar, which is now the biggest shareholder with 36.11 percent.

The drama over control of Arabtec caused the stock, one of the most heavily traded in Dubai, to swing wildly, raising questions over information disclosure and regulation in the emirate's equity market. Arabtec hit a record high of 7.37 dirhams in May 2014 before dropping to a multi-year low of 0.93 dirham last December.

Last week Arabtec posted a net loss of 360 million dirhams ($98 million) for the three months to Dec. 31 versus a year-earlier loss of 94.4 million dirhams; an analyst at SICO Bahrain had forecast a loss of 123.6 million dirhams. But the loss narrowed from 944.8 million dirhams in the third quarter of 2015.

Aabar was previously listed on the Abu Dhabi market but delisted in 2010 after its controlling shareholder International Petroleum Investment Co bought out minority shareholders. Asked whether Arabtec might be delisted, the source declined to comment.