Dubai-based construction firm Arabtec has denied media reports that it is looking for prospective acquisition targets.
The company’s statement follows a report by Bloomberg, which quoted sources saying that Arabtec is seeking advice from consultant PricewaterhouseCoopers (PwC) on potential targets for takeover.
The report also claimed that the company had approached banks to discuss financing for a potential acquisition.
However Arabtec clarified in a statement on Dubai Financial Market that it is “constantly evaluating available acquisition opportunities with the highest return for Arabtec which will serve the company’s best interests and that of its shareholders.”
“As for the aforesaid news, we would like to deny the same and to confirm that at the present time Arabtec is not undertaking any acquisitions.”
Arabtec, in which Abu Dhabi fund Aabar is a major stakeholder, was previously one of the widely traded stocks in Dubai market.
However, the company lost around 70 per cent of its value between May and June after speculation rose about Aabar reducing its stake in the firm.
The Dubai-listed firm also dragged down the wider stock market, with the DFM losing almost $30 billion of value within eight weeks last year.
Arabtec’s fall in value prompted regulators to review the existing disclosure rules in the region’s financial market.
Although Arabtec’s stock market value has recovered over time, the company posted poor Q3 results in 2014.
Net profit fell by 32 per cent to Dhs68.7 million during the quarter due to Arabtec’s administrative expenses rising by 89 per cent.
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