The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Arabtec Holding shares soared in Dubai after the company started talks to merge with Abu Dhabi-based Trojan Holding LLC.
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.
Arabtec shares were up 11% at 12:51 pm 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.
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 pm 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.