Dubai’s Arabtec gets regulatory nod for recapitalisation

Arabtec’s board said it was seeking shareholders’ approval for a Dhs1.5bn rights issue



Dubai contractor Arabtec said on Wednesday it received approval in principle from the stock market regulator for its recapitalisation programme.

The approval is subject to the completion of Arabtec’s 2016 full-year financal audit and final approval from the regulator, it said.

Arabtec reported a wider fourth-quarter loss on Feb. 13, and its board said it was seeking shareholders’ approval for a Dhs1.5bn ($408.4m) rights issue to recapitalise the company.

Shares of Arabtec have lost 36.4 per cent of their value since the company announced its results and disclosed plans of the rights offering.