Former CEO Hasan Ismaik finally breaks his silence over the future of his 27.9 per cent stake in construction-giant Arabtec.
Speaking to Reuters on Wednesday (August 27), Ismaik confirmed investor speculation that the ‘deal of the year’, as it has been dubbed, was on the horizon as he has been in talks with Abu Dhabi-based Aabar Investments.
However, he also mentioned that he rejected offers by Aabar, who is the second biggest shareholder with an 18.94 stake, for five dirhams a share, insisting on an improved offer. Arabtec’s current share price 4.71 dirhams.
Throughout the week, the construction giant enjoyed a four-day consecutive surge, as rumours of the potential takeover surfaced.
However, news that there was a setback in the negotiations led to a 1.67 per cent drop on Thursday.
Regulators and investors alike will be hoping the saga, which has been ongoing since late June when Ismaik reigned as CEO, will be resolved promptly. Arabtec is the largest stock on the Dubai Financial Market (DFM), and throughout the summer it has dragged the performance of the entire bourse through its turmoil.
On Thursday the DFM General Index, which has also witnessed slight growth throughout the week, fell by 1.16 per cent.