DUBAI: Qatar-based Panceltica Holdings Ltd, a London-listed provider of steel technology to the construction industry, is studying a takeover offer from Barwa Real Estate Co, Barwa said yesterday.
Barwa, an affiliate of the state-owned Qatar Investment Authority's $40bn property wing Qatari Diar, is awaiting a reply from Panceltica before entering into serious discussions or negotiations, Barwa said in a statement on the Doha bourse website.
"In this context, a letter of intent was delivered," Barwa said.
Panceltica, which listed on London's AIM market in March 2008, said on April 24 its financial position was dependent on the final determination of a key contract with Barwa.
Panceltica has a contract with Barwa to build 1,984 apartments in Qatar.
The company said in December it expected to post an operating loss of between $23 million and $59 million for the year ending December 31, largely due to delays in completing its main construction project in Qatar.
Executives at Barwa declined to comment.
Approval for Hassad Barwa stake sale
Barwa Real Estate Company yesterday announced that its board of directors has approved the sale of its entire shares in the capital of Hassad Barwa to Hassad Food, in addition to the transfer of all present and future agricultural projects of Hassad BARWA to Hassad Food.
The administration of Barwa Real Estate Company is to complete all procedures for the completion of the sale and project transfer process.
© The Peninsula 2009
