Arabtec to boost capital in key Emirati unit
Abu Dhabi, December 23, 2013
UAE construction firm Arabtec has announced plans to raise the share capital of its subsidiary, Emirates Falcon Electromechanical Company (Efeco) by Dh500 million ($136 million).
Efeco became a wholly-owned subsidiary of Arabtec in October, when the UAE builder completed the acquisition of the remaining 45 per cent stake in the company.
Arabtec said these acquisitions were in line with Arabtec’s strategy of growing its Mechanical, Electrical and Plumbing (MEP) capabilities and consolidate its position as a market leader in the sector, contrary to the media speculations regarding an acquisition of Drake and Scull which were dismissed in an official statement by Arabtec Holding as baseless.
The increase in capital will be used to grow the business by investing in equipment and machinery, enabling Efeco to bid for higher value projects. The capital will also enable the Emirati industrial company to expand into other Gulf countries as well as Egypt and other North African countries.
Hasan Abdullah Ismaik, the managing director and CEO of Arabtec Holding, said: “The aim behind the significant capital increase is to create a leader and key player in the MEP sector in the Mena region. Efeco already has a very strong backlog of over $1 billion, which we expect to grow substantially, and this will firmly establish the Company as a strong competitor in this vital sector.”
“Efeco is now well positioned for significant growth. In addition to a very strong and growing backlog, we also have a strong aspiration to develop the company into a global leader in the MEP sector, and we have the right senior management, with some of the best in the industry, to grow the business and maximise shareholder value,” added Ismaik.
Efeco was established in 2001 to offer MEP services to the construction industry in the Middle East through its operations in the UAE, Qatar, Jordan, and the Kingdom of Saudi Arabia.
The company provides design, procurement, installation, testing and commissioning services for electrical, air conditioning, plumbing, sanitary works, instrumentations, telecommunication and fire-fighting systems in residential and commercial developments.
It also provides expertise in the infrastructure sector, including road works, paving, sewage, drainage, irrigation and landscaping works.-TradeArabia News Service