Ex-CEO of Arabtec sells $4 million worth of shares
Speculation increases that Aabar will buy out part or all of Ismaik’s stake
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Hassan Ismaik, the former CEO of Arabtec, has sold close to $4 million worth of shares from his stake in the Dubai construction company, stock market data has shown.
Arabtec shares have seen severe fluctuations in 2014 following apparent tensions between its former chief executive and the Abu Dhabi state fund, Aabar Investments, who is also a major shareholder. The situation was exacerbated further when Ismaik abruptly resigned in June.
The website of Dubai Financial Market showed that Ismaik had cut his stake to 28.77% from 28.85%. The new data was published on Thursday, July 24, 2014, which implied that the shares were sold on Wednesday, July 23, 2014.
The data showed that 3.52 million shares were sold, worth a total of $4 million at Wednesday’s closing stock prices. Ismaik, who earlier declined to comment on his stake, remains the largest shareholder in Arabtec, a Reuters report said.
According to DFM, Aabar is the second largest shareholder with 18.94%.
In the wake of Ismaik’s resignation, share prices in Arabtec fell drastically, which in turn saw the entire stock market drop. Investors are now speculating that Aabar will buy out part or all of Ismaik’s stake.
In a brief statement earlier in the week. Aabar said that it was studying different options, but that any negotiations would be confidential.
Arabtec’s board met on Thursday to review its second-quarter earnings and other issues, the company said; the earnings are expected to be announced on Sunday.
