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Arabtec CEO Says Management Won’t Change Because of Aabar Stake
Arabtec Holding Co. (ARTC), the biggest builder in the United Arab Emirates by market value, doesn’t expect any management changes after Abu Dhabi’s state-owned Aabar Investments PJSC’s raised its shareholding.
Whether the Aabar stake is “10 percent or 20 or 40 or 50 it’s the same for us,” Chief Executive Officer Riad Kamal told reporters at Arabtec’s shareholder meeting in Dubai today. “It represents strong support for the company and shows Aabar’s interest as a government entity in strengthening our company and giving it opportunities.”
Aabar boosted its ownership in the Dubai builder to more than 10 percent, according to data compiled by Bloomberg. Shareholders at the meeting approved Arabtec’s new board that includes members from Aabar, which dropped a $1.74 billion offer for Arabtec two years ago.
Kamal said he expects to see more contracts in Abu Dhabi as a result of the Aabar stake.
Arabtec has enough operational capital and doesn’t need to raise loans, the CEO said. “There is no need for further financing now.”
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