Arabtec capital reduction effective June 21

Company invited all its creditors to submit documents of their debts

Arabtec Holding, the Dubai-listed construction firm, said it will cancel over 4.6 billion of its shares effective June 21 as part of the company’s capital reduction programme.

The share cancellation will reduce Arabtec’s share capital to Dh1.5 billion, distributed among 1.5 billion shares of a nominal value of Dh1 each.

The capital reduction programme, which would extinguish Dh4.6 billion in accumulated losses, follows a Dh1.5 billion rights issue launched by Arabtec on May 15. The capital increase is expected to be completed by June 8, Arabtec said in a statement to the Dubai bourse yesterday.

Key dates

The company also named key upcoming dates for its rights issue, including May 28 as the closing date of the subscription period.

The last day of allocation of new shares will be June 5, while the listing of new shares will be June 8.

Proposed dates for the capital reduction programme include a board meeting on June 21, and an entitlement date of June 22.

In another statement to the bourse, Arabtec invited all its creditors to submit documents of their debts to the company’s offices in Dubai for Arabtec’s legal department.

Arabtec’s rights issue and capital reduction are part of a recapitalisation programme announced in February to turn around financial performance as the company reported Dh3.4 billion in losses for 2016.

As part of its turnaround plan, Arabtec will also dispose of non-core investments.