Arabtec Holding
ARTC
ARTC
Investors were left stumped by the abrupt departure of the Chief Executive of Arabtec Holding (ARTC.DFM), just weeks after pledging to transform the company into one of the world's biggest builders. Arabtec spokesman said that Hasan Ismaik resigned to concentrate on his other business interests. Mr Ismaik's profile rose significantly in the early months of the year with a series of eye catching announcements.
In March, Arabtec unveiled a USD40bn contract for the construction of one million affordable houses in Egypt. Under his watch, Arabtec unveiled an ambitious four-year plan last month to help it become one of the world's top 10 contractors by the end of 2018. Mohammed Ali Al Fahim, an Arabtec Board Member, was confirmed as the company's acting Chief Executive at the company's board of directors meeting held in Abu Dhabi on 18 June 2014.
In addition to his role at Arabtec, Mr Al Fahim is the Head of Finance at International Petroleum Investment Company (IPIC), and a Board Member of Arabtec shareholder Aabar Investments. Not helping matters was Arabtec's silence in the wake of a dramatic increase in Mr Ismaik's shareholding in the company, followed by an abrupt sell-down of company shares by Aabar Investments. Mr Ismaik increased his shareholding in the company to 28.85% in early June, from just 8.03% in late May, a move described as a vote of confidence that would reduce volatility in Arabtec's share price.
However. the stock's volatility has only increased since, as it emerged last week that Aabar, previously the company's largest shareholder, had reduced its stake to 18.85% from 21.57%, sending the share price tumbling. Mr Ismaik affirmed that he had not received any offers from other parties to buy his 28.85% share in Arabtec, but declared himself open to selling. On the other hand, ARTC announced founding its subsidiary in Egypt and which is expected to develop the one-million residential-units project next week.
The project is done in cooperation with the Egyptian Armed Forces. ARTC is considering establishing the company in foreign currency to avoid incurring losses from the currency exchange rate. The Commercial International Bank "CIB" (COMI.EGX) will carry out the arrangement of the local funds, according to the National.
In March, Arabtec unveiled a USD40bn contract for the construction of one million affordable houses in Egypt. Under his watch, Arabtec unveiled an ambitious four-year plan last month to help it become one of the world's top 10 contractors by the end of 2018. Mohammed Ali Al Fahim, an Arabtec Board Member, was confirmed as the company's acting Chief Executive at the company's board of directors meeting held in Abu Dhabi on 18 June 2014.
In addition to his role at Arabtec, Mr Al Fahim is the Head of Finance at International Petroleum Investment Company (IPIC), and a Board Member of Arabtec shareholder Aabar Investments. Not helping matters was Arabtec's silence in the wake of a dramatic increase in Mr Ismaik's shareholding in the company, followed by an abrupt sell-down of company shares by Aabar Investments. Mr Ismaik increased his shareholding in the company to 28.85% in early June, from just 8.03% in late May, a move described as a vote of confidence that would reduce volatility in Arabtec's share price.
However. the stock's volatility has only increased since, as it emerged last week that Aabar, previously the company's largest shareholder, had reduced its stake to 18.85% from 21.57%, sending the share price tumbling. Mr Ismaik affirmed that he had not received any offers from other parties to buy his 28.85% share in Arabtec, but declared himself open to selling. On the other hand, ARTC announced founding its subsidiary in Egypt and which is expected to develop the one-million residential-units project next week.
The project is done in cooperation with the Egyptian Armed Forces. ARTC is considering establishing the company in foreign currency to avoid incurring losses from the currency exchange rate. The Commercial International Bank "CIB" (COMI.EGX) will carry out the arrangement of the local funds, according to the National.
Source:
Mubasher
