Arabtec buys electrical services unit for $45m
Dubai, April 24, 2013
Dubai-based builder Arabtec will buy the 45-per cent of Emirates Falcon Electromechanical Co (EFECO) it does not already own for $45 million as it expands into affordable housing projects, two sources with knowledge of the deal said.
EFECO was established in 2001 and specializes in the electro-mechanical building services sector with operations in Abu Dhabi, Doha, Amman and Riyadh.
Arabtec declined to comment.
Shareholders of Arabtec, part owned by Abu Dhabi state fund Aabar Investments, last week approved a $1.8 billion capital increase plan, paving the way for its regional expansion.
The company had said previously the funds would be raised through a rights issue and debt issuances. It plans to raise the money in stages with Dh2.4 billion ($653 million) to be raised through a rights issue before the end of June.
Arabtec, one of the builders of Dubai's famous palm islands, will use some funds from the capital increase to buy out the remaining stakes in its subsidiaries, one of the sources said.
The EFECO deal comes a month after sources told Reuters Arabtec would buy the 40-percent stake in Target Engineering it does not already own to expand its move into the oil and gas construction business.
Arabtec underwent a management shake-up last month, driven by Aabar, which saw its chief executive replaced.
Aabar, which owns stakes in companies such as commodities trader Glencore and Italian bank UniCredit, has been exerting its influence since it started buying shares in Arabtec last year.
It replaced four Arabtec board members with its own candidates and named its chairman, Kadem Abdulla al-Qubaisi, as Arabtec's chairman.-Reuters