Abu Dhabi's Aabar to increase stake in Arabtec

(MENAFN) Abu Dhabi-state-run fund Aabar Investment said that it has received regulatory approval to buy a further 100 million shares in Arabtec through one of its subsidiaries, thus strengthening its hold on the Dubai-listed builder, Gulf News reported.

By buying the additional stake, Aabar's stake in the company would rise to 37.27 per cent from 35.6 per cent at present, despite decreasing its share in the company last year when it cut its holding to 18.94 per cent from 21.57 per cent over several days, but then the fund bought additional 16 per cent stake in the company from its departing CEO to re-increase its stakes in the company again and doubling its holding to 34.93 per cent from 18.94 per cent.

"Shareholders of Arabtec are unlikely to sell now unless they get a good price. Also, if Aabar wants to buy more shares of Arabtec, it means there is a good plan for the future, so shareholders may wait and not sell immediately," manager of domestic capital markets at National Bank of Abu Dhabi commenting on this deal.