Dubai builder Arabtec buys key stake in Depa
Abu Dhabi, November 22, 2012
Arabtec Holding, Dubai's largest listed builder, said on Thursday it will acquire a stake in Depa, a day after the interior contractor's shares jumped 47 per cent on a rumoured buy.
Arabtec said its board had approved the purchase of 149.6 million shares in Depa - valued at $65.8 million based on Wednesday's closing share price on Nasdaq Dubai - and it would take effect from today (November 22).
The builder, in which Abu Dhabi investment fund Aabar owns a stake, said it was buying the shares from various investment funds. It did not disclose the price it paid for the shares.
Shares in Depa soared on Wednesday, hitting a five-month high at $0.44. About 150 million shares changed hands, which is more than what the company's shares traded in the previous two years combined.
Depa said in a statement on Wednesday that "the name of the purchaser, the size of their current stake and their intentions are unknown."
Arabtec and a consortium of Turkish and Greek firms were awarded a $2.9 billion contract in June to build a mid-field airport terminal in Abu Dhabi.
In the same month, Depa and its German joint venture partner saw a $245 million contract to fit out the new Doha International Airport terminated.
Depa has been involved in a number of high-profile projects in the UAE, including the fitting of the interior for the Burj Khalifa, the world's tallest building.-Reuters