Qatar-based Panceltica Holdings, a London-listed provider of steel technology to the construction industry, is studying a takeover offer from Barwa Real Estate Company, Barwa said on Monday.

Barwa, an affiliate of the state-owned Qatar Investment Authority's $40 billion property wing Qatari Diar, is awaiting a reply from Panceltica before entering into serious discussions or negotiations, Barwa said in a statement on the Doha bourse website. "In this context, a letter of intent was delivered," Barwa said.

Panceltica, which listed on London's AIM market in March 2008, said on April 24 its financial position was dependent on the final determination of a key contract with Barwa.

Panceltica has a contract with Barwa to build 1,984 apartments in Qatar.

The company said in December it expected to post an operating loss of between $23 million and $59 million for the year ending December 31, largely due to delays in completing its main construction project in Qatar. Executives at Barwa declined to comment.-Reuters