Dubai: Arabtec Holding, the Dubai-listed construction firm, said it would convene a general meeting with shareholders to get approval for a capital reduction plan and to “decide on the continuation of the company” as it reported higher losses in 2016.
According to a statement posted to the Dubai bourse, Arabtec’s net losses attributable to shareholders reached Dh3.4 billion in 2016, steeply widening from the Dh2.35 billion recorded in 2015.
Arabtec also said it will discuss during its next general meeting a proposed recapitalization plan regarding capital reduction, as well as a rights issue. The company said it would issue a separate announcement with further details about the proposed recapitalization plan.
The statement did not provide any details on where the losses in 2016 came from, but the company had attributed earlier losses challenges in the economic environment.
Revenues for the year rose to reach Dh7.67 billion – up from Dh7.2 billion in 2015.
Arabtec shares plunged in early trade, falling by 9.85 per cent in the first hour of trade to reach Dh1.19. The Dubai bourse’s main index was down nearly 1.5 per cent.
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