April 12 (Bloomberg) -- Aabar Investments PJSC, which dropped a $1.74 billion offer for Arabtec Holding PJSC two years ago, is set to have four seats on the Dubai builder’s board as it raises its stake in the company.
Aabar Chairman Khadem Alqubaisi, Chief Executive Officer Mohamed Badawy Al-Husseiny, and board members Mohamed Al Fahim and Mohamed Al Mehairi were nominated to Arabtec’s board, according to a statement on the Dubai bourse today. Aabar, through its units, holds 10.45 percent of Arabtec, the latest filings on the stock exchange show.
Aabar’s “consolidation to increased ownership was definite, which is translating to the expected control” of Arabtec, said Yazan Abdeen, who helps oversee about $250 million as a fund manager at ING Investment Management in Dubai.
Others nominated to the board include Yasser Zaghloul, CEO of Abu Dhabi-based National Marine Dredging Co., as well as Arabtec CEO Riad Kamal, Khalifa Al Mehairi, Mohammed Al Marri, Raja Ghanma and Mutaz Sawwaf, according to the statement. The recommendations will be considered at a shareholders meeting on April 28, it said.
Kamal, Sawwaf and Ghanma were part of Arabtec’s previous board, according to information on the stock exchange. Others in the previous board included Henry Azzam, Iyad Duwaji, Sheikh Nawaf Al Thani, Abdulla Jassem Bin Kalban, Adel Al Nowais and Ibrahim Sharif Belsalah, the filing shows.
Aabar, which owns stakes in Daimler AG and UniCredit SpA, in 2010 pulled a bid for a 70 percent of Arabtec through the purchase of bonds that would be exchanged for shares. After the deal fell through, Arabtec and Aabar said they planned a “strategic partnership.”
Arabtec shares gained 1.2 percent to 3.46 dirhams at 11:14 a.m. in Dubai today. The stock has surged 118 percent this year compared with a 24 percent increase for the benchmark DFM General Index.
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