DSI removes CEO, sells majority stake

dubai — Contractor Drake and Scull International (DSI) on Monday announced removal of its CEO Wael Allan and resignation of several board members as it undergoes a major restructuring.

The company said in a statement on Monday that the board also approved former executive vice-chairman Khaldoun Al Tabari’s resignation.

It will elect a new set of board of directors during its upcoming general assembly scheduled later this year. The company has decided to appoint four new members to fill the positions vacated by the recent resignation of four members.

Tabarak Investment, which extended a Dh100 million interestfree loan to the Dubai-listed firm, acquired majority stakes from the former CEO. As part of the first phase of restructuring, DSI will see Tabarak Investment’s entry as a strategic investor with capital increase by Dh500 million.

The construction firm’s net losses for Q2 2017 reduced by 12 per cent to Dh199 million as compared to Dh226 million during Q2 2016 with one-off provisions and impairments charges of Dh68 million undertaken in the last quarter.

Feras Kalthoum, acting CFO, DSI, said the results of the quarter should be viewed within the context of the company’s turnaround plan.

— waheedabbas@khaleejtimes.com