Neither the Dubai Financial Market (DFM) nor the Emirates Securities and Commodities Authority (SCA) have contacted Arabtec, the Dubai contractor, over controversial share dealings in the company, its chief financial officer Ziad Makhzoumi says. In his first statement since news emerged earlier this week that the DFM was examining Arabtec share transactions in the run-up to the US$1.7 billion (Dh6.24bn) takeover by Aabar Investment of Abu Dhabi, Mr Makhzoumi said: "We have not been approached by the DFM or SCA on this subject.
"The DFM monitors the daily trading and can detect any usual activities but I am not aware of any such investigation. The DFM - would be able to identify any unusual trades and none were identified, it seems, to warrant an investigation." The purchase of a 70 per cent stake by Aabar in Arabtec was announced on January 7, following weeks of market speculation that there had been talks between the two companies.
The shares rose sharply ahead of the announcement despite official denials from Arabtec and Aabar that there had been any talks between them. The deal was first discussed at a meeting on January 4, according to a statement to the DFM earlier this week. Mr Makhzoumi said: "The whole process since the approach was officially made by Aabar Investments PJSC was handled as per the guidelines and rules of SCA and in continuous consultation with them. A press release was issued regarding this matter. SCA and the DFM were informed of the details immediately after an event took place and any disclosures were guided and cleared by the regulatory authorities."
On the controversy that has accompanied the deal, Mr Makhzoumi said: "Besides facts, speculation and rumours always affect any publicly listed company, and that is usually reflected in the share price. "I have talked to various investors and fund managers who do not share the view that the reputation of the company is affected in any way because of the recent events or by the reports or speculation in the media."
A DFM executive, who declined to be named or quoted, said its analysis of Arabtec share dealings was a routine review based on an analysis of its own trading records. It was likely to be a lengthy process, especially with a high-volume stock such as Arabtec, he said. If there was a case for further investigation, DFM could submit its findings to SCA for consideration. Arabtec shares have fallen since the Aabar announcement. They closed 0.82 per cent down at Dh2.41 yesterday.
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