Comprehensive M&A data with integrated detailed company information
Arabtec isn’t horsing around with Trojan
Posted on Wednesday, 11 September 2019 10:31
UAE high-rise apartments-to airport terminals developer Arabtec Holding and Trojan Holding are in early stage discussions to combine their respective construction operations.
The Dubai-based heavyweight has not yet hired advisors to help on an agreement, which would only be reached following all the necessary technical, financial and legal reviews.
News regarding a potential tie-up of some kind emerged last week when Arabtec and Trojan said they were “willing to explore the possibility of entering into a cooperation agreement with a view to collaborate in the construction sector”.
Investors pushed up shares in the company that helped build the world’s tallest tower from AED 1.59 (USD 0.43) on 9th September to AED 1.77 on 10th September following the announcement.
Gains have since been pared as stock is trading at AED 1.76 at the time of writing to give a market capitalisation of AED 2.66 billion.
Arabtec, through its operating subsidiaries and investments, delivers construction and infrastructure projects, including commercial, residential, social industrial and economic infrastructure, in the Middle East and North Africa.
The group’s completed portfolio comprises iconic buildings such as the Burj Khalifa in Dubai, Abu Dhabi landmark, the Emirates Palace Hotel and Louvre Abu Dhabi Museum.
In 2005, it became the first construction company to list on the Dubai Financial Market.
Arabtec recorded net profit attributable to its parent of AED 58.00 million on revenue of AED 4.20 billion for the six months ended 30th June 2019, down from AED 113.00 million on AED 4.81 billion in H1 2018.
Trojan is considered to be one of the fastest-growing construction firms in the UAE and it comprises several companies, including Trojan General Contracting, National Projects & Construction and Royal Advance Electro-Mechanical, among others.
So far this calendar year, 27 deals have been announced that target the construction sector in the Middle East, according to Zephyr, the M&A database published by Bureau van Dijk.
The largest by value is currently the completed USD 4.90 billion joint venture agreement by ADNOC Infrastructure and a consortium comprising BlackRock’s Global Energy & Power Infrastructure Fund and KKR to form ADNOC Oil Pipelines.
© Zephus Ltd