Gulf News reported that Arabtec Holding, UAE’s largest contractor has acquired 24% stake or 149.55 million shares in Depa Limited, a Dubai based leading interiors contractor from investment funds.
Depa said that Arabtec has paid USD 0.44 per share worth USD 65.8 million. The board of directors of Arabtec Holding PJSC has agreed to acquire a state in Depa Limited, a company listed on Nasdaq Dubai, comprising a total of 147,555,275 shares from various investment funds who offered to sell their shares in Depa Limited.
Analysts said that the move will help Arabtec to offer a better solution to developers when it bids for projects. With this acquisition, Arabtec and Depa could create the right synergy when they engage in projects. Both are market leaders in their capabilities which are complimentary as Arabtec constructs projects and Depa develops the interiors. Together, they could provide better and almost complete solutions to developers.
The move comes just two weeks after Depa secured AED 93 million contract to undertake the supply and installation of interior decoration works for the Hilton Hotel in Abu Dhabi, UAE. The Hotel is the second phase of the Al Forsan International Sports Resorts development, one of the Middle East’s largest sports, leisure and dining resorts.
The company said that the company continues to have a backlog of projects at near record levels and has a very strong pipeline of future projects, especially in the GCC and South East Asia, which will be signed into the backlog in the coming months.
The latest contract adds to the work it is currently doing on the Hilton Hotel in Riyadh, part of the King Saud University, for a contract value of AED 183 million and the new Conrad Hotel in Dubai, Hilton’s luxury brand. The Conrad Hotel contract which had a value of AED 250 million is due to be completed in the coming months.
Source:
http://www.steelguru.com/middle_east_news/Arabtec_acquires_24pct_stake_in_Depa_for_USD_66_million/293015.html
