Contrary to media reports, Abu Dhabi investment fund Aabar had only increased its stake in Dubai builder Arabtec to 20.76 per cent by May 10, the company said in a regulatory filing on the Dubai Financial Market website on Monday.
Arabic daily Alrroya had earlier quoted Aabar chairman Khadem al-Qubaisi as saying that the company had taken a 53 per cent stake in Arabtec.
“The company (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,” Qubaisi, who is also Arabtec’s newly-appointed chairman, was quoted as saying.
Aabar had tried to acquire a 70-per cent stake in Arabtec for $1.7 billion in 2010, but the deal fell through and was cancelled.
However, both firms said they would continue to work together and in March this year, Aabar managed to raise its Arabtec stake to 5.3 per cent. It later doubled the stake to 10.5 per cent through another subsidiary.
The Abu Dhabi fund, which owns stakes in Daimler, Glencore and UniCredit, has continued to buy more shares in Arabtec in recent weeks.
In April, Aabar also awarded a $60 million contract to Arabtec to build a residential development in Abu Dhabi.