Arabtec shareholders approve rights issue
Arabtec’s shareholders approved all of the resolutions set out at its annual general meeting today, including a proposal to undertake a capital restructuring that will see it raise Dh1.5 billion through a rights issue, and the subsequent cancellation of more than 4.6 billion shares allowing it to write down accumulated losses of more than Dh4.16bn.
The approval will allow the company to move forwards with a plan to bring in extra cash and a new management team to stabilise the business and focus on its core competencies of contracting, mechanical, electrical and plumbing, and infrastructure work.
The majority shareholder Aabar Investments, which currently holds a 36.11 per cent stake in the company, has already indicated that it will effectively underwrite the rights issue portion of the deal, stating that it will buy up any unallocated shares should other other shareholders decide against signing up for the offer. The company’s shares finished the day marginally higher at 84 fils each, which is below the Dh1 subscription price at which the rights issue needs to be set.
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