Private equity firm Tabarak Investment has increased its shareholding in Drake and Scull International, despite a drop in the Dubai contracting company's shares and ahead of a shareholder meeting later this month, that may decide the company's fate.
Tabarak Investment raised its share to 13.73 per cent from 13.26 per cent, DSI said in a statement to the Dubai Financial Market on Sunday.
"Some of these shares are held in the name of Ajman Bank as a collateral against financial facilities," DSI said. "Tabarak Investment retains its actual ownership rights as the beneficiary owner of the shares."
Drake and Scull, which has faced mounting losses since 2015, said on Wednesday it is calling a shareholder meeting on September 27 in accordance with UAE companies law. The law states that shareholders must decide on whether to dissolve a company if its losses amount to half of their issued share capital.
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After the statement on the Dubai bourse, DSI shares plunged the maximum daily limit of 10 per cent to Dh0.405, leaving them down 82 per cent since the end of 2017.
The building company, which posted a second-quarter net loss of Dh181.1 million, issued a second statement hours later on Wednesday emphasising that its board is exerting all its effort to safeguard shareholders' interests and "ensure the seamless operation of the company and its continuity".
The shareholders meeting to vote is a "mere legal requirement" in accordance with UAE company law and does not mean that it intends to dissolve the company before its expiry term, DSI said.
Tabarak Investment's incremental stake increase in Drake and Scull conveys its commitment to the construction company, analysts said.
"Tabarak increasing its stake in DSI marginally is symbolically positive, particularly, after the recent speculation on whether the company will get dissolved or not," Nishit Lakhotia, head of research at Bahrain-based Sico, said.
Tabarak Investment's move will have a "neutral" impact on Drake and Scull, Lina Hisham, research analyst at Naeem Brokerage said.
"Symbolically, it shows Tabarak Investment’s commitment to Drake and Scull, that everything is fine and that the company will not necessarily dissolve,” Ms Hisham said.
Tabarak Investment was being strategic when it raised its share in Drake and Scull, Nabil Al Rantisi, managing director of capital markets at Daman Investments, said.
"They see value in investing at these prices and it probably helps boost confidence," Mr Al Rantisi said.
Drake and Scull must focus on its near-term liquidity problems, given its "huge" short term liabilities, Mr Lakhotia said.
"What DSI currently needs is more cash inflow through either equity infusion from Tabarak or raising debt," Mr Lakhotia said. "Probability of both options looks low currently."
Analysts said dissolution of the company is not an inevitable outcome and alternative solutions could include taking the company private, recapitalising or taking on an strategic investor.
On August 14, the company said it would appoint Yousef Al Mulla as chief executive from August 26, replacing Fadi Feghali, who took the post in April. It did not provide a reason for hiring its second CEO in a year.
The company’s biggest shareholder is Ajman Bank with a 13.06 per cent share, according to the DFM.
Match info
Uefa Champions League Group C
Liverpool v Napoli, midnight
MATCH INFO
Red Star Belgrade v Tottenham Hotspur, midnight (Thursday), UAE
Getting there
Given its remote location, getting to Borneo can feel daunting even for the most seasoned traveller. But you can fly directly from Kuala Lumpur to Sandakan and Sepilok is only half an hour away by taxi. Sandakan has plenty of accommodation options, while Sepilok has a few nature lodges close to the main attractions.
Full Party in the Park line-up
2pm – Andreah
3pm – Supernovas
4.30pm – The Boxtones
5.30pm – Lighthouse Family
7pm – Step On DJs
8pm – Richard Ashcroft
9.30pm – Chris Wright
10pm – Fatboy Slim
11pm – Hollaphonic
The Roundup
Director: Lee Sang-yong
Stars: Ma Dong-seok, Sukku Son, Choi Gwi-hwa
Rating: 4/5
Gender equality in the workplace still 200 years away
It will take centuries to achieve gender parity in workplaces around the globe, according to a December report from the World Economic Forum.
The WEF study said there had been some improvements in wage equality in 2018 compared to 2017, when the global gender gap widened for the first time in a decade.
But it warned that these were offset by declining representation of women in politics, coupled with greater inequality in their access to health and education.
At current rates, the global gender gap across a range of areas will not close for another 108 years, while it is expected to take 202 years to close the workplace gap, WEF found.
The Geneva-based organisation's annual report tracked disparities between the sexes in 149 countries across four areas: education, health, economic opportunity and political empowerment.
After years of advances in education, health and political representation, women registered setbacks in all three areas this year, WEF said.
Only in the area of economic opportunity did the gender gap narrow somewhat, although there is not much to celebrate, with the global wage gap narrowing to nearly 51 per cent.
And the number of women in leadership roles has risen to 34 per cent globally, WEF said.
At the same time, the report showed there are now proportionately fewer women than men participating in the workforce, suggesting that automation is having a disproportionate impact on jobs traditionally performed by women.
And women are significantly under-represented in growing areas of employment that require science, technology, engineering and mathematics skills, WEF said.
* Agence France Presse
Top tips to avoid cyber fraud
Microsoft’s ‘hacker-in-chief’ David Weston, creator of the tech company’s Windows Red Team, advises simple steps to help people avoid falling victim to cyber fraud:
1. Always get the latest operating system on your smartphone or desktop, as it will have the latest innovations. An outdated OS can erode away all investments made in securing your device or system.
2. After installing the latest OS version, keep it patched; this means repairing system vulnerabilities which are discovered after the infrastructure components are released in the market. The vast majority of attacks are based on out of date components – there are missing patches.
3. Multi-factor authentication is required. Move away from passwords as fast as possible, particularly for anything financial. Cybercriminals are targeting money through compromising the users’ identity – his username and password. So, get on the next level of security using fingertips or facial recognition.
4. Move your personal as well as professional data to the cloud, which has advanced threat detection mechanisms and analytics to spot any attempt. Even if you are hit by some ransomware, the chances of restoring the stolen data are higher because everything is backed up.
5. Make the right hardware selection and always refresh it. We are in a time where a number of security improvement processes are reliant on new processors and chip sets that come with embedded security features. Buy a new personal computer with a trusted computing module that has fingerprint or biometric cameras as additional measures of protection.
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
The lowdown
Bohemian Rhapsody
Director: Bryan Singer
Starring: Rami Malek, Lucy Boynton, Gwilym Lee
Rating: 3/5
CREW
Director: Rajesh A Krishnan
Starring: Tabu, Kareena Kapoor Khan, Kriti Sanon
Rating: 3.5/5
Avengers: Endgame
Directors: Anthony Russo, Joe Russo
Starring: Robert Downey Jr, Chris Evans, Scarlett Johansson, Chris Hemsworth, Josh Brolin
4/5 stars
The specs: 2018 Honda City
Price, base: From Dh57,000
Engine: 1.5L, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 118hp @ 6,600rpm
Torque: 146Nm @ 4,600rpm
Fuel economy, combined: 5.8L / 100km
Mubalada World Tennis Championship 2018 schedule
Thursday December 27
Men's quarter-finals
Kevin Anderson v Hyeon Chung 4pm
Dominic Thiem v Karen Khachanov 6pm
Women's exhibition
Serena Williams v Venus Williams 8pm
Friday December 28
5th place play-off 3pm
Men's semi-finals
Rafael Nadal v Anderson/Chung 5pm
Novak Djokovic v Thiem/Khachanov 7pm
Saturday December 29
3rd place play-off 5pm
Men's final 7pm
Confirmed bouts (more to be added)
Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez
Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.
UAE currency: the story behind the money in your pockets
ESSENTIALS
The flights
Emirates, Etihad and Swiss fly direct from the UAE to Zurich from Dh2,855 return, including taxes.
The chalet
Chalet N is currently open in winter only, between now and April 21. During the ski season, starting on December 11, a week’s rental costs from €210,000 (Dh898,431) per week for the whole property, which has 22 beds in total, across six suites, three double rooms and a children’s suite. The price includes all scheduled meals, a week’s ski pass, Wi-Fi, parking, transfers between Munich, Innsbruck or Zurich airports and one 50-minute massage per person. Private ski lessons cost from €360 (Dh1,541) per day. Halal food is available on request.
Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
Scorecard
Scotland 220
K Coetzer 95, J Siddique 3-49, R Mustafa 3-35
UAE 224-3 in 43,5 overs
C Suri 67, B Hameed 63 not out
TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
BRAZIL SQUAD
Goalkeepers: Alisson, Ederson, Weverton
Defenders: Dani Alves, Marquinhos, Thiago Silva, Eder Militao , Danilo, Alex Sandro, Alex Telles, Bremer.
Midfielders: Casemiro, Fred, Fabinho, Bruno Guimaraes, Lucas Paqueta, Everton Ribeiro.
Forwards: Neymar, Vinicius Junior, Richarlison, Raphinha, Antony, Gabriel Jesus, Gabriel Martinelli, Pedro, Rodrygo