Dubai-listed Arabtec to hire deNovo to sell its subsidiary Target -sources

Arabtec's engagement with deNovo is due to begin this week

  
Image used for illustrative purpose. Arabtec logos are seen on buildings under construction in the Marina area of Dubai in this picture taken November 28, 2009.

Image used for illustrative purpose. Arabtec logos are seen on buildings under construction in the Marina area of Dubai in this picture taken November 28, 2009.

REUTERS/Steve Crisp

DUBAI- Dubai-listed contractor Arabtec Holding is going to hire corporate advisory firm deNovo for a potential sale of its subsidiary Target, two sources said.

The Dubai-listed builder that is facing liquidation is hoping that funds raised will be used to pay creditors and salaries, said the sources, declining to be named as the matter is not public.

Arabtec's engagement with deNovo is due to begin this week, said one of the sources.

Arabtec and deNovo did not immediately respond to a request for comment on Tuesday.

Target specialises in oil and gas projects and marine work with operations in the United Arab Emirates, Qatar and Saudi Arabia, its website says.

Arabtec told banks in October that Target had been identified as a sustainable business and could be protected from the collapse of the wider group if creditors agreed to a standstill, sources told Reuters at the time.

The company did not tell lenders how much of their lending to Arabtec was allocated to Target. 

Last week, banks, in principle, agreed to a standstill, said the source, which showed support from its lenders for the liquidation process.

(Reporting by Hadeel Al Sayegh, editing by Louise Heavens) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))


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