ABU DHABI, 26th November, 2013 (WAM) -- Arabtec Holding announced today that it has entered into a definitive agreement to increase its stake in Target Engineering Construction Co. LLC to 98%, with senior management retaining the remaining 2% stake.
Arabtec acquired 60% of Target Engineering in 2007, and the acquisition of a further 38% for AED 270 million supports company?s strategic expansion in EPC (engineering, procurement and construction) in the oil and gas and power sectors. The transaction will be funded by the proceeds from Arabtec Holding?s recent rights issue. Hasan Abdullah Ismaik, Managing Director and CEO of Arabtec Holding said: "Target Engineering has been an important part of Arabtec?s business, since our initial acquisition in 2007. Given Target Engineering?s expertise and Arabtec?s strategic expansion within oil and gas EPC, this is the next logical step for us. This acquisition, together with the joint venture with Samsung Engineering, will allow us to further grow our EPC offering and strengthen our capabilities in the oil and gas, power and related infrastructure sectors in the Middle East and North Africa." The transaction is subject to the satisfaction of customary closing conditions and is expected to complete by the end of the year.Copyright Emirates News Agency (WAM) 2013.
