Aabar Investments has no plans of increasing its 21% stake in Arabtec Holdings, the MD of the construction firm says.
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Aabar Investments will not increase its current 21% stake in Arabtec Holding, the managing director of the construction contracting firm said on Saturday during a televised appearance.
Speaking to Abu Dhabi TV, Hasan Abdulla Ismaik said that Aabar’s stake was “supportive to Arabtec, but they have not applied for an increase of their stake.”
“Arabtec Holding seeks to preserve liquidity and does not want to borrow and be under burdens,” he added.
The construction firm will look to enter the infrastructure sector, in addition to the oil and gas sectors, so as to increase its chances of getting new projects in the Gulf region, the managing director confirmed.
Riad Kamal, the former CEO of Arabtec resigned in February as part of a boardroom overhaul instigated by Aabar Investments. The Abu Dhabi investment fund had already replaced four board members with its own candidates and named its chairman, Kadem Abdulla Al Qubaisi, as Arabtec’s chairman.
The construction firm plans to raise $1.8bn through a rights issue and convertible bonds, it had announced earlier. It was recently awarded a $275mn contract to build the Fairmont Abu Dhabi.