Arabtec is in talks to hire Swiss bank UBS as a financial adviser to assist in its potential merger with Abu Dhabi's Trojan Holding, as the two contractors look to scale up operations amid tough market conditions.
Appointment of a financial adviser is the next step in Arabtec's plans to merge with the construction arm of Trojan Holding. UBS will help Arabtec in "preliminary evaluation" for the combination of the businesses, Arabtec said on Tuesday in a statement to the Dubai Financial Market, where its shares trade. Dubai investment bank, Shuaa Capital, is advising Trojan on the deal, according to a Reuters report last week. Shuaa declined to comment when approached by The National.
The two companies said last month they are reviewing the possibilities of a merger transaction.
"In the event an agreement is reached … following the technical, financial and legal reviews, it is intended that a contract will be signed for this purpose detailing the terms and applicable procedure for such combination which may lead to a merger between the two companies", Arabtec said in a September 10 bourse filing.
Construction companies in the UAE, one of the top projects market in the GCC, have faced headwinds as the property market slowed in the wake of a three-year oil price drop that began in 2014. Concerns about an oversupply of residential and commercial units added to the softness but analysts are forecasting a recovery on the back of a new immigration regime offering long-term visas for investors, the Dh50 billion Ghadan 21 initiative, Expo 2020 and changes to the freehold property law. The oil price has also rebounded and is currently hovering between $50 to $60 per barrel.
Arabtec is the UAE's largest-listed contracting company with a workforce of more than 45,000. In August, the company reported a 49 per cent decline in its first-half profit to Dh57.8 million as revenue fell 12 per cent to Dh4.2bn. The company said its backlog remained "strong" at Dh14bn, despite a fall in new contract awards during the reporting period.
Trojan Holding has several construction companies in its fold, including Trojan General Contracting and National Projects and Construction. It also owns subsidiaries that carry out mechanical electrical and plumbing contracting, cladding, steel and aluminium fabrication and pre-cast and ready-mix concrete. It is part of the Royal Group.
Trojan General Contracting has picked up large contracts for developers such as Aldar Properties, Emaar Properties and Nakheel.
In July, it won a Dh2bn contract from Aldar to expand the Al Falah housing community, an Abu Dhabi government scheme. It is building the Palm Tower Hotel and Residences on Dubai's Palm Jumeirah for Nakheel. The company is also carrying out work in Chechnya, Russia, Rabat in Morocco and in the Kurdistan region of Iraq.
The value of mergers and acquisitions in the Middle East and North African reached $120.6bn (Dh443bn) in the first nine months of the year, up 160 per cent on the same period last year, according to data by Refinitiv.
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Honeymoonish
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Brighton 1
Gross (50' pen)
Tottenham 1
Kane (48)
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
