Dubai-listed contractor Arabtec Holding, which is facing liquidation, has confirmed that it has hired corporate advisory firms for a potential sale of its subsidiaries, Target Engineering and Arabtec Engineering Services (AES).
The construction company, famous for helping build high profile buildings including the Burj Khalifa, is considering to auction its subsidiaries to raise funds to pay creditors after it commenced liquidation proceedings at the end of last year.
“The company has for this purpose engaged deNovo Corporate Advisors to advise on the potential sale of Target and Lumina Capital Advisers on AES,” Arabtec said in a statement to Dubai Financial Market (DFM).
“It should be noted that in the event a sale of any of the Company’s subsidiaries or their assets is agreed, any such sale will be subject to the approvals and ratifications as may be required under applicable UAE laws,” it said.
Arabtec first acquired 60 percent of Target Engineering in 2007, before acquiring a further 38 percent in 2013. AES was started by Arabtec in 2007.
Target won a $110 million ADNOC contract in the weeks prior to Arabtec’s initial liquidation announcement.
Arabtec said the option to auction the subsidiaries was a possible route available to protect the value of liquidation assets in the interests of all creditors.
News that Arabtec shareholders had voted to liquidate the company broke in September following $216 million of losses in the first half of the year.
After two and a half months of discussions, the decision was made to commence liquidation proceedings in December 2020.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
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