{"id":53463,"date":"2017-05-02T15:42:03","date_gmt":"2017-05-02T08:42:03","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=53463"},"modified":"2017-05-02T13:51:45","modified_gmt":"2017-05-02T06:51:45","slug":"arabtec-plans-to-get-rights-issue-sorted-this-month","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-plans-to-get-rights-issue-sorted-this-month\/","title":{"rendered":"Arabtec plans to get rights issue sorted this month"},"content":{"rendered":"


\nThe 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 an invitation for shareholders to subscribe to a capital increase tomorrow (May 3). The opening date for those who wish to subscribe to new shares will be Monday, May 15, and the closing date for subscribers is Sunday, May 28.
\nThe company is looking to raise Dh1.5 billion through the rights issue by issuing 1.5 billion new shares, bringing the total number of shares in issue to more than 6.1 billion.Following this, the number of shares in issue will be reduced on a pro-rata basis by more than 4.1 billion, freeing up liabilities that will allow the company to expunge historic losses worth more than Dh4.1 billion. The company lost Dh3.4 billion in 2016 alone after taking Dh1.9 billion in provisions against its receivables.
\nThe capital reorganisation will be dilutive for minority shareholders who decide against subscribing to new shares, which are being issued at their par value of Dh1 per share, which is above the current market price of 86 fils. This led to criticism of the move from some shareholders at its recent annual general meeting, which took place on 18 April.However, the issue has effectively been underwritten by the company’s biggest shareholder, Aabar Investments, which currently owns a 36.11 per cent stake in the firm. It has pledged to subscribe to its full allocation and to pick up any additional shares should others decide not to subscribe.
\nSpeaking at the company’s annual general meeting, the new chief executive Hamish Tyrwhitt, who joined the company in November, argued that this capital reorganisation was the only method Arabtec had at its disposal for achieving an effective turnaround as it is already carrying a substantial amount of debt.”Could we have done a convertible bond? Could we have raised less capital? Could we have taken on more debt? Could we have traded through the challenge that we have? I can assure you that the board and management went through an exhaustive list of options,” Mr Tyrwhitt said.
\n“Even within the UAE, you can see how companies have dealt with challenges in the past. Some have delisted, some have closed down altogether,” he added. “What we’re doing here is in the best interest of all shareholders and is in the best interest of the company going forward. You may believe that there are other options. I can assure you that every available option that was available to us, we explored.”
\nArabtec has posted nine successive quarterly losses between the third quarter of 2014 and the end of last year, but at the annual general meeting Mr Tyrwhitt hinted that a turnaround may already be underway, with the company likely to generate a profit for the first quarter of 2017.Arabtec’s board is set to meet again on Thursday to approve its first quarter numbers.mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Arabtec plans to get rights issue sorted this month<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The contractor Arabtec has said that it is planning to tie up its rights issue...<\/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-53463","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-dUj","jetpack-related-posts":[{"id":50666,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-shareholders-restructuring-vote-scheduled\/","url_meta":{"origin":53463,"position":0},"title":"Arabtec shareholders' restructuring vote scheduled","date":"April 2, 2017","format":false,"excerpt":"\r Shareholders in Arabtec are due to vote on its proposed capital restructuring at its annual general meeting, which is scheduled to be held on Tuesday, 18 April.The company has proposed a restructuring that will see it raise Dh1.5 million through the issue of 1.5 million new shares, initially taking\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"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":53463,"position":1},"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":52193,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-shareholders-approve-rights-issue\/","url_meta":{"origin":53463,"position":2},"title":"Arabtec shareholders approve rights issue","date":"April 18, 2017","format":false,"excerpt":"\r Arabtec's shareholders approved all of the resolutions set out at its annual general meeting today, including a proposal to undertake a capital restructuring that will see it raise Dh1.5 billion through a rights issue, and the subsequent cancellation of more than 4.6 billion shares allowing it to write down\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":51827,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-updates-its-plan-to-recovery\/","url_meta":{"origin":53463,"position":3},"title":"Arabtec updates its plan to recovery","date":"April 14, 2017","format":false,"excerpt":"\r Arabtec on Thursday published an update to its three-step recapitalisation plan that it hopes shareholders will pass as part of a latest round of fund raising aimed at wiping out accumulated losses.In a note to the Dubai Financial Market (DFM), Arabtec reiterated that its total liabilities currently exceed the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":49114,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-sets-price-for-rights-issue-at-a-premium\/","url_meta":{"origin":53463,"position":4},"title":"Arabtec sets price for rights issue at a premium","date":"March 22, 2017","format":false,"excerpt":"\r Arabtec Holding has set the price of its rights issue at Dh1 per share, a premium of 14 per cent to Tuesday night's closing price of Dh0.86.It is undertaking the transaction as part of a recapitalisation to reduce accumulated losses of Dh4.6 billion. The pricing of the offer at\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":49118,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-sets-price-for-rights-issue-at-a-premium-2\/","url_meta":{"origin":53463,"position":5},"title":"Arabtec sets price for rights issue at a premium","date":"March 22, 2017","format":false,"excerpt":"\r Arabtec Holding has set the price of its rights issue at Dh1 per share, a premium of 14 per cent to Tuesday night's closing price of Dh0.86.It is undertaking the transaction as part of a recapitalisation to reduce accumulated losses of Dh4.6 billion. The pricing of the offer at\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\/53463"}],"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=53463"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/53463\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=53463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=53463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=53463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}