Drake & Scull denies hiring advisor for investment
DSI's CFO said that the company had appointed a legal adviser to hold discussions with the UAE financial bodies for bringing in strategic investors
Dubai exchange-listed contractor Drake & Scull International (DSI) has not hired a legal adviser for helping to bring a strategic investor into the company, a company statement said.
"The company denies the appointment of any legal adviser in connection with bringing in a strategic investor or issuance of mandatory convertible bonds," the company told the Dubai Financial Market (DFM).
"The company will make appropriate disclosures, when such material development comes into effect," it added.
The statement was issued after the company's chief financial officer, Kailash Sadangi, told Reuters earlier this week that DSI had asked advisers for proposals to review its business and find strategic investors.
Sadangi also said that the company had appointed a legal adviser to hold discussions with the UAE stock market regulator, the Securities and Commodities Authority, on the possibility of bringing in strategic investors and regulatory approvals that would be needed.
An issue of mandatory convertible bonds is among options being considered and DSI has made a strategic decision to withdraw gradually from its civil engineering business in Saudi Arabia, Sadangi added. Mandatory convertibles must be changed into underlying shares by a specific date.
Like many other Gulf construction companies, DSI has been hit by an economic slowdown in the region because of low oil prices.
In its statement, the company did not comment on its business review beyond saying: "DSI, in its normal course of business, engages consultants, advisers to review its strategy, operations and provide financing solutions for its operations."