Interiors company Depa is awaiting clarity on the impact of Arabtec’s shareholder vote to dissolve last week, although it has confirmed a $22 million exposure to the construction company.
In a statement to Nasdaq on Sunday, Depa PLC said it would not know the impact of Arabtec’s decision on its own operations until discussions are complete or a liquidation application is made to the courts.
However, it said it is undertaking a company-wide restructuring and non-core asset disposal.
Arabtec, which acquired its stake in Depa in 2012, confirmed on Thursday that it will be dissolved following a shareholder vote.
In a statement to Nasdaq, Depa clarified that it is “neither wholly owned by nor controlled by Arabtec”.
“While Arabtec is Depa’s second-largest shareholder (owning 24.18 percent), the majority of Depa’s shares are held by individuals, funds and institutions not connected with Arabtec,” it said.
“Arabtec has a minority representation on the board of directors of Depa,” it added.
Depa had earlier confirmed in a 2019 year-end statement that it had a financial balance owed from Arabtec of approximately 82 million UAE dirhams ($22 million).
“Depa’s exposure to Arabtec Group remained at a similar level as at 30 September 2020,” it said on Sunday.
“Notwithstanding the above, Depa continues to pursue its pipeline of opportunities and deliver on its secured projects,” the company said.
“[The] management is implementing Depa’s group-wide transformation and restructuring programme and continues to take action to reduce Depa’s cost base to protect its financial position, in addition to the continuation of its non-core asset disposal programme,” the statement said.
(Reporting by Imogen Lillywhite; editing by Cleofe Maceda)
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