Dubai's Khansaheb Investments buys back stakes in three companies from UK's Interserve

Company buys back minority shares in main contractor, oil & gas company and facilities manager

The buy-back of stakes in three companies from Interserve International gives Khansaheb Investments "full ownership of our assets", says chairman Tariq Hussain Khansaheb. Image courtesy of Khansaheb InvestmentsShow less

Dubai-based Khansaheb Investments bought back stakes in three companies that were previously held in a joint venture with UK-based Interserve.

The family-owned group behind one of the UAE's oldest contracting businesses has bought back stakes in contractor Khansaheb Civil Engineering, oil & gas specialist Khansaheb Hussein and facilities management company Khansaheb Group from Interserve International. It did not disclose a value for the purchases, but said the deal meant it is now "the primary owner of all its group companies".

“We are pleased to announce the successful acquisition of Interserve’s shares in three of our companies, as we reclaim full ownership of our assets," Khansaheb's chairman, Tariq Hussain Khansaheb, said.

Khansaheb's role in construction in the UAE began in 1935 when it built the first motor track from Sharjah to Ras Al Khaimah. The company has worked on a number of important buildings in the country including Mall of the Emirates, the Wafi Raffles Hotel, Emirates National Oil Company's headquarters and Sharjah International Airport. Its joint ventures with Interserve began in 1981 when Khansaheb formed a partnership with RM Douglas, a UK-based contractor that was eventually acquired by Interserve.

Interserve had held a 45 per cent stake in Khansaheb Civil Engineering and 49 per cent shares in Khansaheb Group and Khansaheb Hussein, but its parent company was placed into administration in March last year with total liabilities of £1.2 billion ($1.56bn). A restructuring deal with lenders allowed most of its assets to be immediately bought back by a new entity, Interserve Group.

Khansaheb becomes the latest UAE contractor to secure full control of a former joint venture. Al Futtaim Construction's joint venture with UK-based Carillion ended after the latter was placed into liquidation in the UK in 2018, while Dutco Group bought out Balfour Beatty's stake in two joint ventures, DBB Contracting and BK Gulf, for £11 million in 2017.

"We look forward to continuing to develop a world-class portfolio of companies that add tangible value to the UAE economy. This will help strengthen the resilience of the UAE and contribute to our nation’s economic recovery post-Covid-19,” Mr Khansaheb said.