Dubai’s Arabtec Said in Talks With Adviser on Takeovers

By Matthew Martin, Sarmad Khan and Zainab Fattah

Arabtec Holding Co. (ARTC), the United Arab Emirates’ biggest publicly traded construction company, is seeking advice from PricewaterhouseCoopers LLP on acquisition targets, two people with knowledge of the matter said.
PwC hasn’t yet been formally mandated by Arabtec, the people said, asking not to be identified as the information is private. Arabtec also approached banks to discuss potential financing for a takeover, a third person said. PwC declined to comment, while the company that helped build the Burj Khalifa, the world’s tallest tower in Dubai, didn’t respond to calls and an e-mail requesting comment.
Arabtec’s ambition to become one of the world’s top construction companies was thrown into doubt after Chief Executive Officer Hasan Ismaik resigned in June with other managers spearheading the plans. Ismaik had sought to expand into areas including
oil and gas, infrastructure and power, and said the company also planned an acquisition in Europe.
Arabtec raised its stake in Target Engineering Construction Co. to 98 percent last year after buying almost a quarter of interior-fitting contractor Depa Ltd. in 2012.
Shares in the construction company declined 4.3 percent to 2.70 dirhams as of 12:10 p.m. in Dubai, after falling 3.8 percent yesterday. The stock rose 43 percent in 2014.