Arabtec Holding Co.’s chief executive officer was made a director of Dubai interior contractor Depa Ltd. as the construction company exerts its influence after buying almost a quarter of the shares last year.
CEO Hasan Abdullah Ismaik and Arabtec board members, Mohammed Al Fahim and Wassul Fakhoury were also appointed to a reshuffled board, Depa said today in a statement. Iyad Abdulrahim, chief financial officer at Arabtec, was also added to Depa’s board.
Arabtec paid a 47 percent premium for its stake in Depa, which fits out luxury hotels, yachts and apartments. Fawz Al Hokair, Khaldoun Tabari and Marwan Shehadeh joined the board, while Riad Kamal, also a board member of Arabtec, and Orhan Osmansoy were removed. Shareholders didn’t approve resolutions to reappoint Faisal Al Matrook, Chris Foll and Ahmad Ramadan, according to the Depa statement.
“Arabtec could eventually reach for the reminder of Depa’s shares should it encounter any difficulties in exercising the amount of control that it requires over Depa’s resources with its existing stake and arrangements with other significant shareholders,” Jan Pawel Hasman, a Cairo-based analyst at EFG-Hermes Holding SAE, said today by e-mail. He has a buy rating on Depa and a neutral rating on Arabtec.
Depa shares declined 4.7 percent to close at 40 cents in Dubai today. The stock is up 14 percent this year. Arabtec fell 0.4 percent to 2.4 dirhams, cutting its gain for this year to 7.1 percent.