(MENAFN- Khaleej Times) Abu Dhabi's Aabar Investments has acquired a 53 per cent controlling stake in leading UAE construction company Arabtec Holding, two years after the government-owned fund failed in its first $1.7 billion bid for the builder.
Aabar, which owns stakes in high-profile names such as German carmaker Daimler, commodities trader Glencore and Italy's UniCredit, had been buying up shares in recent weeks through subsidiaries and owned a 10.45-per cent in Arabtec as at end of April.
The Arabic daily Alrroya, citing Khadem Al Qubaisi, who is now chairman of both companies and managing director of the International Petroleum Investment Company, or Ipic, reported the latest development.
"Aabar has bought a 23 per cent stake directly from Arabtec during the last period, while it acquired the remaining 30 per cent from other shareholders," Al Qubaisi, who is also Arabtec's newly-appointed chairman, was quoted as saying.
Al Qubaisi described the investment as a successful opportunity, and said Aabar would consider awarding more real estate contracts to Arabtec in Abu Dhabi.
Last week, Al Qubaisi became the new chairman of Arabtec by replacing Ibrahim Belselah, whose resignation has been accepted after just eight months in the position. Al Qubaisi, who is currently also the chairman of Aabar, was one of four executives from the Abu Dhabi investment vehicle recently nominated to Arabtec's board. The founder of Arabtec, Riad Kamal, has been voted as vice-chairman.
The new development comes close on the heels of a $2 billion deal signed by Aabar with China State Construction Engineering Corp to develop real estate projects in Abu Dhabi.
Industrial and Commercial Bank of China will provide Aabar with funding, while China State Construction will be the contractor for the projects, China State Construction said in a statement to the Shanghai stock exchange.
Arabtec shares, which have soared 94 per cent year-to-date, dropped 6.4 per cent on Sunday on the Dubai bourse over fears that the company may delist and that minority shareholders' interests would be overlooked. Aabar shocked retail investors in 2010 when it delisted from the Abu Dhabi bourse as part of a full buyout by Ipic.
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