Drake & Scull completes capital restructuring programme
Drake & Scull International (DSI) has announced the completion of its capital restructuring programme after receiving $136m (AED500m) as part of a capital increase from Tabarak Investment
Drake & Scull International (DSI) has announced the completion of its capital restructuring programme after receiving $136m (AED500m) as part of a capital increase from Tabarak Investment.
The company received regulatory approval for the capital restructuring programme at a general assembly meeting last month, revealing that the company’s share capital will be reduced from $626.2m (AED2.3bn) to $155.5m (AED571m).
The completion of the programme and the entry of Tabarak Investment as a strategic investor will enable the company’s new leadership to move forward with its operational plans and focus on further enhancing its core competencies in the mechanical, electrical and plumbing (MEP) sector.
The capital restructuring programme, which began earlier this year, aims to improve the financial position of the company and enhance operational efficiency, according to the company leadership.
DSI made several key executive appointments as part of its restructuring efforts in Septemeber, naming Ziad Makhzoumi as an advisor to its board of directors.
The company’s board also elected Abdulla Atatreh as the new chairman, independent member Ahmed Saeed Al Hamiri as vice chairman, and Abdulla Fareed Algurg as new board member last month.
Engineer Abdulla Atatreh, chairman of Drake & Scull International PJSC, said: “Completing DSI’s recapitalization program is a significant milestone for the company and reaffirms the dedication and the commitment of the new of board of directors in taking the necessary decisions that safeguard the interest of our shareholders and sets a solid foundation for the group to press ahead with key strategic initiatives to regain business momentum.
“The completion of the program is a fundamental phase in rebalancing our capital structure and improving our liquidity and the new capital injection will be used to improve operations and accelerate projects execution, in addition to securing new project awards and pursuing opportunities to diversify our income and reinforce shareholders confidence.”
Atatreh added that with the successful completion of the capital restructuring programme, the share capital of the company now stands at $291m AED1.07bn with the total equity of the group increased by $136m (AED500m).