DSI shareholders vote against dissolving loss-hit contractor
The company's board of directors chose to not dissolve the contracting firm
The board members of loss-making Dubai-listed Drake & Scull (DSI) have chosen not to dissolve the construction contracting firm.
DSI's general assembly, held on 4 October in Dubai, was told that the board of directors had approved to "continue carrying out the activity of the company" after it previously made reference to dissolving the firm in an update on the Dubai Financial Market.
In a missive to the Dubai bourse, DSI said: "The shareholders of the company were informed by the [board of directors] on the current situation of the company and its future plans, along with the developments in the investigation conducted by the new management with regards to the previous executive management."
While a decision has been made to keep the company going, it was not revealed what the next steps for the business are.
Yousef Al Mulla, group chief executive officer at DSI, succeeded Dr Fadi Feghali in the role this August. Feghali had stepped into the role in March 2018.
At the time of Mulla's appointment, DSI said the business was entering "the next phase of the restructuring plan" that will see its operations in under-performing market segments scaled down. The programme, it is hoped, will allow the contractor to "focus on core markets and profitable business streams".
The contractor made a net loss of $49.8m (AED183m) in H1 2018, which was attributed to cost overruns for non-performing subsidiaries in markets such as Oman.
DSI will publish its Q3 2018 results before the end of the year.