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Home / NEWS / Drake & Scull boss says no plans to sell his stake

Drake & Scull boss says no plans to sell his stake

on May 15, 2013


Drake chief executive Khaldoun Tabari
Drake chief executive Khaldoun Tabari

RELATED ARTICLES: Drake & Scull posts 47% Q1 profit rise | Drake & Scull wins $180m worth of new contracts | Drake & Scull wins $49m Qatar MEP contract

RELATED ATICLES: Drake & Scull posts 47% Q1 profit riseDrake & Scull wins $180m worth of new contractsDrake & Scull wins $49m Qatar MEP contract

The chief executive of Dubai contractor Drake and Scull has no intention of selling his stake in the firm, he said on Tuesday, but there will be more partnerships on projects with builder Arabtec.

Drake, which specialises in mechanical, electrical and plumbing (MEP), has seen its shares jump 35% year-to-date on growing speculation that it was a takeover target, with Arabtec viewed by analysts as a possible buyer.

Arabtec is on an expansion drive after a management shake-up led by Abu Dhabi state fund Aabar, its largest shareholder.

"I have heard the speculation," Drake chief executive Khaldoun Tabari told Reuters on the sidelines of a conference in Abu Dhabi.

"I am not interested in selling my stake. Our shares are out in the market and our company is doing well.

"We have always worked closely with Arabtec and will continue to do so. You are going to see more announcements of us working closely with Arabtec."

He attributed the increase in share price to the company's performance this year.

"Our turnover has increased by 25 to 30%."

Tabari owns about 44% of Drake directly and through other companies. He said the results of a bid for $136m MEP work at the Midfield Airport Terminal project in Abu Dhabi, currently under construction, would be known in a few days.
"We don't rule it out," said Tabari, when asked if Drake would secure this contract.

The contractor in total is currently bidding for projects worth about AED15bn Tabari said, and its order backlog exceeds AED10bn.
 



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