Arabtec Jumps to Six-Week High on Stake Sale Bets: Dubai MoverSarmad Khan
Arabtec Holding Co. climbed to a six-week high on speculation Aabar Investments PJSC may soon increase its stake in the United Arab Emirates’ largest publicly traded builder.
Arabtec’s shares rose 4.8 percent to 4.79 dirhams, the highest close since July 16, taking advances in the past five days to 13 percent. The stock surged as much as 8.1 percent earlier. It was the most active company, with more than 243 million shares traded, and the biggest gainer in Dubai’s DFM General Index, which added 0.2 percent today.
Khadem Al Qubaisi, chairman of the construction company and state-controlled Aabar, said July 2 that the second-biggest shareholder in Arabtec may raise its stake. Aabar is in talks to buy at least half of former Arabtec Chief Executive Officer Hasan Ismaik’s 27.9 percent holding and is negotiating a price of 5 dirhams to 6 dirhams a share, a person with knowledge of the matter said July 15.
“There is talk that Aabar is actually reaching a resolution on acquiring Ismaik’s stake in Arabtec,” Ahmed Shehada, the Abu Dhabi-based head of advisory and institutions at NBAD Securities LLC, said by telephone today. “It’s gearing toward a deal, but at the moment it’s all market talk and there’s nothing concrete yet.”