Drake & Scull nears first Saudi acquisition
MEP giant signs Letter of Intent as first of two purchases progresses
Drake & Scull International has signed a Letter of Intent to acquire an as-yet undisclosed Saudi-based MEP contractor.
The Dubai-listed giant sub-contractor intends to expand its presence across the Middle East, which this year has included the full acquisitions of its Qatari subsidiaries, which was followed by a AED140 million contract in Doha, as well as establishing a construction arm in Saudi Arabia.
The announcement to the stock exchange this morning follows previous statements by the company that it aimed to buy two Saudi Arabian companies.
DSI CEO Khaldoun Tabari said in the company’s second-quarter financial statement that he expected the company’s improved revenues “will continue through to the second half of the year, particularly with the planned acquisitions of two Saudi companies during this time, which we believe will contribute to generating greater revenue in the near future”.
On today’s announcement, the CEO said: “We made a commitment to our shareholders when Drake & Scull International listed on the Dubai Financial Market, and are pleased that we are now in a position to deliver on that promise,”
“Our first acquisition in the Kingdom is a key milestone for DSI which will significantly contribute to our momentum as we venture forth in our growth strategy.”
Further details of the acquisition will be announced within the next 30 days, once the Sales Purchase Agreement (SPA) has been signed. The second acquisition will be a civil construction firm, the company has said.
DSI shares rose 1% to 93 fils yesterday, and have risen more than 20% since the start of the third quarter.