Arabtec raises stake in Target to 98%

In 2007, Arabtec had acquired 60 per cent of Target Engineering, a contractor focusing on oil and gas in the UAE, Qatar, Saudi Arabia, and other countries. The acquisition of a further 38 per cent is part of the company’s plan to expand.

Arabtec Holding will raise its stakes in Target Engineering Construction Co. to 98 per cent from 60 per cent in a Dh270 million deal.

This would leave senior management at Target Engineering with the remaining two per cent stake.

Following the acquisition, Arabtec will be using Target Engineering as its preferred contractor delivering medium- sized contracts.

In 2007, Arabtec had acquired 60 per cent of Target Engineering, a contractor focusing on oil and gas in the UAE, Qatar, Saudi Arabia, and other countries. The acquisition of a further 38 per cent is part of the company’s plan to expand in the oil, gas, and power sectors.

The acquisition follows the recent launch of Arabtec Samsung Engineering, a joint venture company that will work on various projects in the Middle East and North Africa region.

“This acquisition, together with the joint venture with Samsung Engineering, will us to further grow our [ engineering, procurement, and construction] offering, and strengthen our capabilities in the oil and gas, power, and related infrastructure sectors in the Middle East and North Africa,” Managing Director and CEO of Arabtec, Hasan Abdullah Ismaik said.

The transaction, which will be funded by the proceeds from Arabtec’s recent rights issue, is expected to complete by the end of this year.