Abu Dhabi’s Aabar Investments PJSC ("Aabar") and Dubai’s Arabtec Holdings PJSC (“Arabtec”) have agreed for Aabar to acquire 70% of the shares (post‐conversion) in Arabtec Holdings PJSC (“Arabtec”) by way of a convertible mandatory bond for a fixed purchase price of Dh2.3 per share, accordingly, the share capital will be increased from Dh1.196,000,000 to Dh3,986,666,667 (representing conversion of the mandatory bond so that Aabar investments PJSC will own 2,790,666,667 shares or 70% of Arabtec Holding PJSC total shares after conversion of the bond) for a total investment consideration of AED 6,418,533,333.
Formal discussions between the two parties commenced the 4th of January, 2010, culminating in an agreed position on Thursday the 7th of January. Closing of the transaction is only subject to completion of legal diligence by January 13, 2010, and Arabtec shareholder consents through an EGM and obtaining the necessary regulatory approvals. Conversion date is expected to occur within three months of obtaining all the necessary approvals. The transaction will further consolidate Arabtec’s market leading position in its industry and marks Aabar’s industry leading position as a diversified investment group.
