Former Arabtec CEO to earn $48m from shares sale

Reports claim Ismaik has sold 41.8mn shares since 23 July

Former Arabtec CEO Hasan Ismaik.
Former Arabtec CEO Hasan Ismaik.

The former chief executive of Arabtec has reportedly earned $48mn from the sale of shares in the Dubai-based construction giant over the past month.

Hasan Ismaik has sold 41.8mn shares, at different prices, over eight trading days since 23 July, according to data compiled from the Dubai Financial Market and Bloomberg News and pubished by UAE daily The National.

The shares sold equate to 4.3% of his stake, the paper said, adding that Ismaik sold tranches of shares worth between $850,000 and $13.6mn on 24 July, 27 July,31  July, 3 August, 4 August, and 5 August.

He remains Arabtec’s largest shareholder, with a stake of 27.9% of the company, with Abu Dhabi-based Aabar Investments the second largest.

The resignation of Ismaik, who was appointed chief executive in 2012, was confirmed in June and led to a turbulent period for Arabtec shares.

Ismaik said in late June, after resigning, that he had received several offers for his stake from parties he declined to identify, but that he might only consider selling at AED6 or AED7 per share.

Last month, Arabtec reported an 11% rise in second-quarter profit, missing analysts' estimates.

Net profit climbed to AED103mn ($28.1mn) in the three months to 30 June from AED92mn ($25mn) a year earlier, the company said in a statement. Analysts polled by Reuters had on average forecast AED111mn ($30.2mn).

Revenues jumped 51% to AED2.41bn ($656mn) on the back of business growth in the United Arab Emirates and other Gulf markets, said Arabtec, Dubai's biggest listed builder. 

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