The markets regulator has given Aabar Petroleum Investments approval to buy 100 million shares of Arabtec.
That would increase Aabar's total holding in the Dubai-listed builder to 37.27 per cent.
Aabar has been acquiring more stock in the UAE’s largest listed builder since the surprise departure of its chief executive, Hasan Ismaik, in June.
The move triggered a share price rout in the following months as investors were left guessing about the plans for the company.
The Securities and Commodities Authority said yesterday that any purchase would need to be made within six months of the approval – or no later than July 25. But there is no obligation for Aabar to make the purchase, it said.
Aabar Investments held 35.27 per cent of Arabtec stock at yesterday’s close, according to Bloomberg data. Mr Ismaik owned 11.8 per cent of the builder.
Arabtec revealed on Sunday it had won two contracts from Abu Dhabi National Oil Company (Adnoc) worth a total of Dh560 million through its Target Engineering unit.
Adnoc awarded a Dh345m contract to expand a housing complex in Ruwais to Target, a fully owned subsidiary of Arabtec. The project, expected to be completed in February next year, includes a new building to accommodate “bachelor employees”.
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