Construction
Arabtec Surges Amid Talks to Combine With Abu Dhabi’s Trojan
(Bloomberg) — Arabtec Holding shares soared in Dubai after the company started talks to merge with Abu Dhabi-based Trojan Holding.
The stock advanced as much as 13%, the steepest intraday gain since July 2017, as Arabtec said the entities began a study to potentially combine their construction businesses and may merge after technical, financial and legal reviews. It didn’t provide further details.
The talks come as a property-market slowdown weighs on companies in the United Arab Emirates. Property prices in the UAE, the second-biggest Arab economy, have dropped about 27% since October 2014 amid excess supply and sluggish economic growth.
S&P Global Ratings expects prices in Dubai, the Middle East’s business hub, to fall by another 5% to 10% this year.
Arabtec’s first-half profit plunged 49% as contracts dried up. The company, controlled by Abu Dhabi’s Aabar Investments PJS, said last year it’s working with Moelis & Co. on restructuring debt.
Arabtec shares were up 11% at 12:51 p.m. local time, trimming their year-to-date decline to 6.8%. The stock has underperformed Dubai’s benchmark index, which is up 14% in 2019.
–With assistance from Filipe Pacheco.
-
Economy2 months agoMiddle East Tensions Heighten Risks to Strait of Hormuz, Raising Uncertainty for Global Oil Markets
-
Economy2 months agoExclusive: Inside Oman’s Evolving MSME Finance Ecosystem – An Interview with Hussain Al Lawati, CEO, Development Bank
-
Banking & Finance4 weeks agoSohar International Contributes OMR100,000 to Support Those Affected by Al Masarrat Weather Conditions
-
News2 months agoAir India Express Announces ‘Payday Sale’; Offers Lowest Fares Across Domestic & International Network
-
OER Magazines1 month agoOER, March 26
-
Economy2 months agoIbri Industrial City Localises Two Projects Worth RO2M in 2025
-
News1 month agoReal Estate Price Index in Oman Grows By 13.9%
-
News2 months agoVIDEO: Al Khamayil Oman Scales Up Production with New Rusail Facility

You must be logged in to post a comment Login