Dubai, 9 June 2013
Arabtec Holding PJSC ("Arabtec" or the "Company"), a leading MENA construction company specialising in complex projects, announced today that the subscription period for its shareholders to apply for and acquire their entitlement to Rights Issue shares began on Sunday 9 June and will continue until Sunday 23 June, 2013.
The Rights Issue aims to raise up to AED2,354,625,000 to help fund a five-year growth strategy. Arabtec is expanding into high-margin areas of construction, particularly oil and gas, power and infrastructure. The company is also extending its footprint across the Gulf Cooperation Council (GCC) countries, with earnings from Saudi Arabia, Qatar and Kuwait growing rapidly in the last year and going forward.
Shareholders of Arabtec who were on the official Dubai Financial Market register as at the end of the official working hours on 30 May 2013 are entitled to apply for one additional share for every share they hold (see note below.)
Eligible shareholders will be able to apply for rights issue shares during the official working hours from participating branches of National Bank of Abu Dhabi and Abu Dhabi Commercial Bank. Application forms for subscription and the invitation to subscription documents are available in any of the participating branches of the banks, and the subscription invitation documents are available on the Arabtec website: www.arabtecholding.com.
Hasan Abdullah Ismaik, Managing Director and Chief Executive Officer of Arabtec Holding said:
"The Board of Arabtec has approved a detailed growth strategy for the next five years, which is underpinned by organic as well as acquisitive growth, and the formation of significant joint ventures. We are confident that shareholders will participate actively in the rights issue in order to share fully in our expected growth in coming years. We would encourage shareholders to participate in the Rights Issue subscription in a timely manner to secure their Rights Issue shares.
"Arabtec's current backlog is valued at more than AED21 billion. In addition, our growth strategy is designed to deliver superior returns to our shareholders."
Recent major project awards include a AED810 million project to build a hotel and apartments in Dubai's Business Bay area, a AED770 million project for a tourist complex in the Aqaba region of Jordan, a AED725 million hotel and apartment project in the Jordanian capital Amman, a AED 1 billion contract to build the Fairmont Hotel in Abu Dhabi, a AED243million project for residential villas in Dubai and a AED238 million project for a hospital and medical centre in Saudi Arabia.
Shareholders of the Company as per the share register of the Company listed on the Dubai Financial Market as at the end of the official working hours on 30 May 2013 (the "Due Date") are entitled to subscribe for the Increase Shares and shall have a priority right in Increase Shares. Subscription applications in Increase Shares shall not be accepted by any person who becomes a shareholder after the Due Date. It should be noted that due to the settlement systems of the Dubai Financial Market based on the principle of registering shares purchased in the Company's record after two working days from the date of purchase, the shareholder registered on the Due Date is the shareholder who owns Company shares on 28 May 2013 at the latest, and shall be accordingly qualified to subscribe to the Increase Shares. Past the Due Date, becoming a shareholder shall not give entitlement to subscribe to the Increase Shares.
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About Arabtec Holding
Since 1975, Arabtec Holding PJSC (Arabtec) has completed a number of iconic projects within the residential and commercial space. Projects include hotels, airports, higher education developments, residential buildings and distribution facilities, amongst others. Arabtec is also renowned for its expertise in industrial and infrastructure works including oil and gas, pipeline construction, power generation, marine works and general manufacturing facilities.
Arabtec was listed on the Dubai Financial Market in 2005, and at the time, was the first private construction firm to go public. Today, Arabtec Holding consists of many subsidiaries, with specialisation in all construction sectors. The Company currently operates in the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Egypt, India, Jordan, Palestine, Russia and Syria. Arabtec continues to expand into additional markets; Arabtec recognises that this growth presents a new set of challenges but is cognisant of the endless opportunities this growth also allows.
For more information, please visit www.arabtecholding.com
For further information, please contact:
Brunswick Group
Assheton Spiegelberg
Dominic Whiting
© Press Release 2013
