Arabtec would be purchasing 45% of Emirates Falcon Electromechanical Co or EFECO shares that the Dubai based builder does not already own. The shares would be worth US$45 million and the move is designed to enter into affordable housing projects.
The transaction was confirmed by two sources with knowledge of the deal who spoke on condition of anonymity. Arabtec shareholders, amongst them Abu Dhabi sovereign wealth fund Aabar Investments, had approved the US$1.8 billion capital expansion plan which paved the way for the regional expansion thus making the EFECO transaction possible.
EFECO specializes in electromechanical building services since 2001. It has operations in Abu Dhabi, Doha, Riyadh and Amman.
When sought for comment, Arabtec declined to provide any. What the company confirmed though that the funds would be raised through a rights issue as well as debt issuances, done through stages scheduled before the end of June. The projected amount would be 2.4 billion UAE dinars.
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