Arabtec to Focus Investment on Oil and Gas Installation Business

Arabtec (ARTC) Holding Co. will use most of the proceeds from a rights offer and bond sale to bolster its oil and gas installation business.

Arabtec, the United Arab Emirates’ biggest construction company, last month announced a plan to raise 6.4 billion dirhams ($1.74 billion). The company will expand its Target Engineering unit “through geographic growth and some acquisitions,” giving it a better chance of winning contracts worth $7 billion, according to a statement today.

The company, which helped build the world’s tallest tower in Dubai, is also expanding its affordable housing, power and infrastructure units after Abu Dhabi-based Aabar Investments increased its direct stake to 21.6 percent. Arabtec plans to raise $650 million in a rights offer this year and, if necessary, will carry out a share sale of a similar size next year, the company said.

Arabtec scrapped a plan to sell convertible bonds and may instead issue $450 million of bonds this year or next if funding is needed, according to today’s statement.

To contact the reporter on this story: Zainab Fattah in Dubai on zfattah@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.