| 19 June, 2017

Dubai-based Tabarak Investment buys Drake & Scull International's stake from ex-chief

Image for illustrative purpose.
Unoccupied construction sites are seen in Dubai's Marina area.

Image for illustrative purpose. Unoccupied construction sites are seen in Dubai's Marina area.

REUTERS/Steve Crisp

DUBAI, 18th June, 2017 (WAM) -- Drake & Scull International, DSI, a regional leader in engineering and services, has announced that UAE-based Tabarak Investment, a private company operating within the diversified financial sector, has acquired a majority of its shares from the Dubai contractor's former chief executive, Khaldoun Tabari, it was announced on Sunday The transaction reaffirms the commitment of Tabarak Investment to the DSI brand and the promising outlook for the company upon completion of the capital restructuring programme. The purchase was approved by the shareholders at the Annual General Assembly Meeting held last month, the company said in a statement.

DSI continues to review and optimise its organisational structure by merging and integrating core functions across operating segments to reduce overheads, streamline costs and improve the bottom-line performance The transaction also concluded a series of key management appointments at both corporate and subsidiary levels. The new management team has been recently complemented with the appointment of Feras Kalthoum as Acting Chief Financial Officer of the Group.

The company advanced with the capital restructuring programme, and on Sunday received further instructions from the Securities and Commodities Authority, SCA, to proceed with the final regulatory preparations to fulfil the approval requirements and initiate the 75 percent capital reduction.

Phase one of the capital restructuring programme (capital reduction) is expected to be completed within six to seven weeks, according to the statement from DSI.

Upon completion of the first phase, the company will instigate the execution of Phase two (capital increase), which includes a AED500 million capital increase to accelerate the entry of Tabarak Investment as a major strategic investor in the company.

The initial projected timeline of the capital restructuring programme has been deferred by a period of one month and the company now expects to complete it by the end of the third quarter.

Wael Allan, the Chief Executive of DSI, said, "We are pleased to see Tabarak Investment reaffirm their unwavering commitment to the company. With their unyielding support, we will aggressively continue to execute our turnaround strategy and undertake key business transformations and strategic initiatives, in collaboration with all our stakeholders." He said the new management team is fully dedicated and geared up for a new phase of financial and operational recovery.

"Despite the short-term challenges, the company is well positioned to benefit from its leadership position in the MEP sector and to secure profitable projects in the UAE market in the near future," Allan added.

© Copyright Emirates News Agency (WAM) 2017.