Arabtec Holding, a leading construction company in the Middle East, said it has won approval from its shareholders for a Dh1.5 billion ($408.2 million) rights issue to recapitalise the company.

The Dubai builder had in February been granted permission by the Securities and Commodities Authority (SCA), the UAE's stock market regulator, for its recapitalisation programme.

In addition, the shareholders approved the special resolutions relating to the Recapitilisation Programme and authorised the board of directors to duly implement them, said the company in a statement to the Dubai bourse.

Arabtec, which reported a wider fourth-quarter loss on February 13, said the rights issue move was essential to reduce share capital through a pro-rata cancellation of shares and to wipe out accumulated losses to help the raising of new equity.

The shareholders' nod came at the Annual General Assembly (AGA) under the chairmanship of Mohamed Thani Murshed Al Rumaithi, said the report.

Lauding the shareholders, Group CEO Hamish Tyrwhitt said: "I am fully committed to repaying your loyalty by working to rebuild and unlock the Arabtec’s undoubted potential in each of the markets and geographies in which we operate."

At the meeting, the shareholders backed the ordinary resolutions including the approval of the company’s consolidated financial statements for the year ended December 31, 2016 and ratifying the appointment of Jamal Saeed Al Nuaimi as a member of the board of directors.-TradeArabia News Service