Khaleej Times reported that construction giant Arabtec Holdings PJSC confirmed that it has reached an accord with the Abu Dhabi based bidder Aabar Investments on 70% share transaction deal worth AED 6.4 billion.

Arabtec, which was involved in the construction of the world’s tallest tower Burj Khalifa said in a statement that “Closing of the transaction is only subject to completion of legal diligence by January 13th 2010 and Arabtec shareholder consents through an EGM and obtaining the necessary regulatory approvals.”

Mr Riad Kamal CEO of Arabtec said that the Aabar offer would be dilutive for shareholders but will provide capital for investments and acquisitions.”

Arabtec said that formal discussions between the 2 parties commenced on January 4th 2010, culminating in an agreed position on January 7th 2010.

Aabar said recently that the deal would provide both cash and potential new contracts for the Dubai builder. Aabar’s acquisition of the Arabtec is the latest in a series of high profile deals worth AED 25 billion hammered by the government-owned investment company last year. These include stakes in the German car maker Daimler, the UK aerospace firm Virgin Galactic and 30% of Brawn GP Formula One last November.

Credit Suisse said that Aabar would give a welcome cash injection to Arabtec through the deal and could help provide new contracts for it in Abu Dhabi. It also said that the conversion price for the convertible bond would mean 20% discount to the closing price of Arabtec on January 7th 2010 of AED 2.89 per share.

(Sourced from Khaleejtimes.com)