{"id":49178,"date":"2017-03-22T16:17:56","date_gmt":"2017-03-22T09:17:56","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-is-on-top-of-risks-says-firms-chief\/"},"modified":"2017-03-22T23:20:35","modified_gmt":"2017-03-22T16:20:35","slug":"arabtec-is-on-top-of-risks-says-firms-chief","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-is-on-top-of-risks-says-firms-chief\/","title":{"rendered":"Arabtec is on 'top of risks', says firm's chief"},"content":{"rendered":"


\nHamish Tyrwhitt, the chief executive of Arabtec, which has about Dh6 billion worth of trade and other receivables owed to it, expects the company to be “on top” of its risks as the builder pursues outstanding payments and prepares to raise Dh1.5bn in a rights issue as it seeks to wipe out accumulated losses. Mr Tyrwhitt said on Wednesday he believes that the company now has a handle on its accounts, with regards to further deterioration in its balance sheet.The company, whose audited accounts on Wednesday showed that it had written off last year Dh1.9bn worth of debt owed to it – a major contributor to a Dh3.4bn annual loss – still has about Dh6bn worth of trade and other receivables owed to it. Mr Tyrwhitt said he does not expect to have to announce significant further write-downs.”I’ve spent a lot of time going through the business to really understand where the receivables are, where the work in hand is, what the state of the business is. “Yes, things change and I don’t know if something catastrophic might happen to one of our clients but if I look at where the bulk of where our risks are, we’re on top of [them],” said Mr Tyrwhitt, who was appointed in November.”Going forward, I can see more opportunities for improvement than I can see risks for further deterioration,” said Mr Tyrwhitt, who also serves as chief executive of fit-out company Depa. “Once we get a few more people, which we need, once we continue to strengthen the way we do business, and once we get the Dh1.5bn injection so we have cash to pay our subcontractors and suppliers to work on rebuilding our reputation, I see us turning things very quickly around.” The rights issue is the first step of a recapitalisation. The second step, involving a reduction of Arabtec’s share capital, will allow the company to reduce liabilities and wipe off accumulated losses of Dh4.6bn.The company is planning to pursue more aggressively claims for outstanding debts owed, the bulk of which are in Saudi Arabia and the UAE. “The Saudi receivables are spread over different projects and the issue there is very well known,” Mr Tyrwhitt said, referring to the Saudi government’s decision to halt payments for most of last year before recommencing them towards the end of the year – albeit seriously delayed.”We’re putting the resources there to manage those issues one by one,” Mr Tyrwhitt said.In the UAE, he said there were outstanding claims that stretched back for years, adding that a claim between Arabtec, the Belgium-based construction company Besix and Korea’s Samsung C&T joint venture that built Burj Khalifa has only recently been resolved. The company also plans to revive its historic Dh1.4bn dispute over the construction of Dubai’s Meydan racecourse after the Dh2.8bn joint-venture contract was cancelled in December 2008. Its partner, the Malaysian builder WCT, took its claim to arbitration and won in 2015. “Certainly with Meydan, that’s one of our largest legacy issues,” said Mr Tyrwhitt. “The plan there is that we are going to pursue this. I’ve got a team that is working on that at the moment to ensure that we get to the client and start chasing this. “For quite some time it was on hold for some reason. We will pursue it the same as our joint venture partner WCT [following its arbitration claim] pursued it.” Allen Sandeep, the head of research at the Egypt-based investment bank Naeem Holding, said the issue around the collectibility of the remainder of Arabtec’s receivables is “critical”.”In my opinion, there are still a lot of receivables outstanding on the balance and a question remains about what happens to those.”If they can address that issue, and move ahead with no more surprise impairments, then it is going to be more positive.” Arabtec on Wednesday said that it is pricing its rights issue at Dh1 per share, which is a premium of 14 per cent on the Dh0.86 closing price on Tuesday. However, given that the par value of its shares is Dh1, this is the lowest price under UAE law at which the issue could be set.This recapitalisation has effectively been guaranteed by the company’s biggest shareholder, Aabar Investments, which holds a 36.11 per cent stake in Arabtec. It has agreed to take up all of its allocation in the rights issue, as well as subscribing to any shares that are not taken up by current shareholders.Shareholders who decide against taking up their entitlement face a potential 24.5 per cent dilution of their holding.mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Arabtec is on ‘top of risks’, says firm’s chief<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Hamish Tyrwhitt, the chief executive of Arabtec, which has about Dh6 billion worth of trade...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-49178","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-cNc","jetpack-related-posts":[{"id":51544,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/capital-restructuring-will-allow-arabtec-to-focus-on-long-term-prospects-says-chief-executive\/","url_meta":{"origin":49178,"position":0},"title":"Capital restructuring will allow Arabtec to focus on long-term prospects, says chief executive","date":"April 11, 2017","format":false,"excerpt":"\r Arabtec Holdings's chief executive, Hamish Tyrwhitt, has said that he is confident the capital restructuring programme, for which the company will seek approval from shareholders next week, will allow the group \"to capitalise on the positive long-term outlook for the construction and engineering sector in our key geographic market\".\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":52231,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-rights-issue-gets-green-light-after-stormy-general-meeting\/","url_meta":{"origin":49178,"position":1},"title":"Arabtec rights issue gets green light after stormy general meeting","date":"April 18, 2017","format":false,"excerpt":"\r The chief executive of Arabtec Holding put in a robust defence of the construction company's decision to embark on a recapitalisation when quizzed by shareholders at a stormy annual general meeting on Tuesday, where a Dh1.5 billion rights issue aimed at boosting its balance sheet was approved.Hamish Tyrwhitt also\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36372,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-appoints-hamish-tyrwhitt-as-new-chief-executive\/","url_meta":{"origin":49178,"position":2},"title":"Arabtec appoints Hamish Tyrwhitt as new chief executive","date":"November 29, 2016","format":false,"excerpt":"\r Arabtec has appointed as its chief executive Hamish Tyrwhitt, who was also recently made chief executive of Depa.In a statement to the DFM this morning, Dubai-listed Arabtec said that Mr Tyrwhitt had replaced the company's acting chief executive, Saeed Al Mehairbi, who will remain an Arabtec board member.Arabtec said\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36346,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-appoints-new-chief-executive\/","url_meta":{"origin":49178,"position":3},"title":"Arabtec appoints new chief executive","date":"November 29, 2016","format":false,"excerpt":"\r Arabtec has appointed the recently appointed Depa chief executive Hamish Tyrwhitt as its chief executive.In a statement to the DFM this morning, Dubai-listed Arabtec said that Mr Tyrwhitt had replaced the company's acting chief executive Saeed Al Mehairbi, who will remain an Arabtec board member.Arabtec said that as well\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":53463,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-plans-to-get-rights-issue-sorted-this-month\/","url_meta":{"origin":49178,"position":4},"title":"Arabtec plans to get rights issue sorted this month","date":"May 2, 2017","format":false,"excerpt":"\r The contractor Arabtec has said that it is planning to tie up its rights issue - the first step of its capital reorganisation programme to clean up its balance sheet - by the end of this month.Following a board meeting held yesterday, the company said that it will publish\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":41690,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-adopts-new-risk-management-plan\/","url_meta":{"origin":49178,"position":5},"title":"Arabtec adopts new risk management plan","date":"January 24, 2017","format":false,"excerpt":"\r Arabtec has said that it is adopting a new risk management plan.In a statement to the Dubai Financial Market on Tuesday morning, the Arabtec chief executive Hamish Tyrwhitt said that the company had supported a new group-wide enterprise risk management plan at its board meeting on Monday.Arabtec shares were\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/49178"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=49178"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/49178\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=49178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=49178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=49178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}