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11 June 2017
United Arab Emirates-based Tabarak Investment has become the largest shareholder in Dubai building contractor Drake and Scull International (DSI), after the firm acquired shares held by former chief executive officer Khaldoun Tabari, a source with knowledge of the deal told Zawya on Sunday.
The sale, which is believed to have taken place on Thursday, boosts Tabarak's total stake in DSI to around 18 to 20 percent and makes it the contractor's largest shareholder, the source added.
DSI's CEO Wael Allan, who replaced Tabari in October 2016, confirmed the deal had taken place but did not confirm any further details.
“I am not privy to the details or transaction price. [I am] very pleased that Tabarak has proceeded and has become the major shareholders. This is obviously a testimony to their commitment to Drake and Scull and coming in and the continuation of the process of the capital reduction and the injection of equity,” he told Zawya in a phone interview on Sunday.
DSI in February announced a turnaround and capital restructuring plan, which included a number of cost-cutting measures and capital raising initiatives, after reporting an annual loss 815.3 million UAE dirhams ($221.83 million) for 2016.
As part of this strategy, it announced to the Dubai Financial Market it had secured a binding offer from Tabarak Investment for a capital injection of 500 million UAE dirhams.
Thomson Reuters Projects reported in April the contractor planned to sell some ‘non-core’ assets in 2017, in a bid to help fund a cash injection of approximately 900 million UAE dirhams ($245 million) in equity this year.
“We have Tabarak Investment coming in with an equity of 500 million. So hopefully this year overall we should generate about 900 million of cash injection equity, excluding what comes from the projects,” Allan was quoted as saying.
DSI announced in March it had sold its stake in the One Palm residential development on Palm Jumeirah to Omniyat Properties, its joint venture partner in the project. It said it hoped to generate 300 million UAE dirhams from the sale, according to a press statement.
DSI, like many construction firms in the region, has been hit hard by the low oil prices and an economic slowdown in the sector, the company said in its consolidated financial results published in March.
© Zawya 2017
United Arab Emirates-based Tabarak Investment has become the largest shareholder in Dubai building contractor Drake and Scull International (DSI), after the firm acquired shares held by former chief executive officer Khaldoun Tabari, a source with knowledge of the deal told Zawya on Sunday.
The sale, which is believed to have taken place on Thursday, boosts Tabarak's total stake in DSI to around 18 to 20 percent and makes it the contractor's largest shareholder, the source added.
DSI's CEO Wael Allan, who replaced Tabari in October 2016, confirmed the deal had taken place but did not confirm any further details.
“I am not privy to the details or transaction price. [I am] very pleased that Tabarak has proceeded and has become the major shareholders. This is obviously a testimony to their commitment to Drake and Scull and coming in and the continuation of the process of the capital reduction and the injection of equity,” he told Zawya in a phone interview on Sunday.
DSI in February announced a turnaround and capital restructuring plan, which included a number of cost-cutting measures and capital raising initiatives, after reporting an annual loss 815.3 million UAE dirhams ($221.83 million) for 2016.
As part of this strategy, it announced to the Dubai Financial Market it had secured a binding offer from Tabarak Investment for a capital injection of 500 million UAE dirhams.
Thomson Reuters Projects reported in April the contractor planned to sell some ‘non-core’ assets in 2017, in a bid to help fund a cash injection of approximately 900 million UAE dirhams ($245 million) in equity this year.
“We have Tabarak Investment coming in with an equity of 500 million. So hopefully this year overall we should generate about 900 million of cash injection equity, excluding what comes from the projects,” Allan was quoted as saying.
DSI announced in March it had sold its stake in the One Palm residential development on Palm Jumeirah to Omniyat Properties, its joint venture partner in the project. It said it hoped to generate 300 million UAE dirhams from the sale, according to a press statement.
DSI, like many construction firms in the region, has been hit hard by the low oil prices and an economic slowdown in the sector, the company said in its consolidated financial results published in March.
© Zawya 2017
