DOCSLIB.ORG

Arabtec Holding PJSC January 4, 2009

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Arabtec Holding PJSC January 4, 2009 Arabtec Holding PJSC January 4, 2009 Fair Value Estimate: AED 4.6 INITIATING COVERAGE Recommendation:: Buy Share Data Market Cap AED 2,703.0 mn Executive Summary Price AED 2.3 DFM 1,636.3 Reuters ARTC.DU Bloomberg ARTC UH Arabtec has a strong order backlog of AED 44.3bn, equivalent Avg. Volume (52 Week) 6.4 mn to 10.4x 2007 revenues, providing excellent top-line visibility 52-Week High/Low AED 9.95 / 1.42 Shares Outstanding 1,196.0 mn for the next 3–4 years and enabling the Company to maintain Fair Value Estimate AED 4.6 positive earnings growth in a weak macroeconomic environment. Key Figures (AED mn) Year to 31 Dec 2007 2008 We believe the current share price more than discounts any Revenue 4,272.9 8,339.9 risks associated with the Company’s contracting exposure in EBITDA 664.4 1,292.7 Adjusted Net Profit 528.7 988.2 Dubai. Currently, Dubai accounts for 52.4% of Arabtec’s order EPS (AED) 0.48 0.83 backlog, a share set to decline in coming years as the Company +/- (%) 163.9% 71.1% focuses on other markets. RoA (%) 14.7% 15.9% RoE (%) 48.1% 54.0% We expect net profit margins to deteriorate to around 11.2% in P / E (x) 4.7x 2.7x 2009 and 10.4% in 2010 from 11.9% for the first nine months EV / EBITDA (x) 3.3x 2.6x P / BV (x) 1.9x 1.2x of 2008 due to the Company’s contract mix comprising one- third cost plus, one-third cost esclation and one-third fixed price. Shareholding Pattern (%) Riad Burhan Taher Kamal 10 In addition, we also expect clients to renegotiate prices of Clients of Shuaa Capital 5 contracts already agreed. Public 85 Outlook: We expect a significant reduction in new order growth Relative Performance in 2009 compared with 2008, due to a slower home market. However, we expect longer term value accretion due to the 12.0 9.0 Company’s geographical and portfolio diversification strategy, 6.0 execution skills and long-term client relationships. 3.0 Valuation: The recent correction in the Company’s stock price 0.0 creates an attractive buying opportunity. Our valuation model Jul-08 Apr-08 Oct-08 Jan-08 Jun-08 Dec-07 Feb-08 Aug-08 Sep-08 Nov-08 Dec-08 Mar-08 May-08 yields a fair value of AED 4.6 per share (ex-bonus), implying an Arabtec Rebased Index upside potential of 102.2% from the current market price of AED 2.3. If we ignore the peer-based valuation, a DCF valuation alone yields a fair value AED 3.4, implying upside potential of 47.8%. We initiate coverage with a Buy rating. ARABTEC HOLDING PJSC ADCB Wealth Management Group I Research I +97126973525 | [email protected] 1 Creating Value Arabtec Holding Company (Arabtec) is a leading construction company in the UAE and one of the largest listed companies in the GCC region. Currently, its operations are largely concentrated in the domestic market, although it is progressively establishing itself in overseas markets including Qatar, Syria, Pakistan, and Russia. Arabtec has reported an exceptionally strong order intake since its inception, particularly during the first nine months of 2008. While we expect the Company’s order intake growth to weaken due to the current economic slowdown, we regard its present valuation as attractive. We initiate coverage with a Buy rating. Strong order backlog provides excellent revenue visibility The Company reports a strong order backlog of AED 44.3bn, equivalent to 10.4x 2007 revenues, providing excellent top-line visibility. At the end of 2008, we expect an outstanding order backlog of around AED 43bn. While we believe Arabtec’s new order growth will slow over the next few years due to the prevailing global economic slowdown generally and expected weakness in Dubai (its home market) in particular, we still forecast positive revenue and earnings growth based on the company’s exceptionally strong order intake in 2008. We expect positive new order inflow from its key focus markets in Abu Dhabi, Saudi Arabia, and Qatar. We conservatively forecast order inflows for 2009, 2010, and 2011 of AED 4.5bn, AED 5bn, and AED 6.9bn, respectively. Valuations more than discount any probable slowdown in Dubai; Abu Dhabi and Saudi Arabia likely to be key focus markets Dubai’s real estate and construction industry, adversely affected by reduced credit availability, is facing challenging market conditions with demand for various properties declining sharply. As a result, existing projects are facing delays while certain others have been suspended. However, we believe Arabtec’s current valuation more than discounts the fact that Dubai is the Company’s home market. At the same time, we argue that the risks associated with the company’s project execution in Dubai have been overstated. At the end of Q3 2008 Dubai accounted for 52.4% of the Company’s order backlog while Russia and Abu Dhabi represented most of the balance. Furthermore, we expect the Company to prioritise its business in Abu Dhabi, which has emerged as the new driver for the domestic construction industry. The Company is also entering the Saudi Arabian market, the second largest in the GCC region in terms of planned projects spending. We believe the Company’s construction expertise and experience will support its continued expansion in these markets. Net profit margin likely to deteriorate We expect the Company’s net profit margin to fall to around 11.2% in 2009 and 10.4% in 2010 from 11.9% over the first nine months of 2008 due to the Company’s current contract mix of one-third cost plus, one-third cost escalation and one-third fixed price. We expect cost plus and cost escalation contracts to undermine margins in a likely scenario of a decline in construction costs. In addition, we believe clients will seek to renegotiate prices of already agreed contracts as they face pressure to maintain their margins in deteriorating macroeconomic conditions. We also forecast an increase in the effective tax rate, due to an increasing revenue contribution from international markets. ARABTEC HOLDING PJSC ADCB Wealth Management Group I Research I +97126973525 | [email protected] 2 Valuation We value Arabtec Holding using Discounted Cash Flow (DCF) and Peer-Based Multiples methodologies. Our ex-bonus fair value estimate (base case) for Arabtec Holding is AED 4.6 per share. We attach a 70% weight to our DCF valuation because it discounts firm-specific cash flows and a 30% weight to our peer-group multiple valuation. Weighted Average Value per Share Valuation Method Value (AED) Weight (%) Discounted Cash Flow (DCF) 3.4 70% Peer-based multiple valuation 7.3 30% Weighted Average Fair Value 4.6 100% Source: ADCB research Sensitivity of Arabtec’s fair value in three different scenarios Fair Value per Scenario Major Assumptions share (AED) Base Case1. Assigned a project execution risk to each project 4.6 depending on their status at the end of Q3 2008 2. Considered a delay in project completion of between 6- 24 months depending on the original project schedule and the current completion status 3. Dubai projects which have not yet commenced - applied a 100% execution risk 4. Okhta Center project, Russia - applied a 100% execution risk 5. Contracts which are not yet awarded are assigned 100% execution risk Best Case All the projects are assumed to be completed without any 5.4 execution risks Worst Case1. Dubai projects which have not yet commenced or have 3.7 less than 10% completion at the end of Q3 2008 - applied a 100% execution risk 2. Okhta Center project, Russia - applied a 100% execution risk Source: ADCB research ARABTEC HOLDING PJSC ADCB Wealth Management Group I Research I +97126973525 | [email protected] 3 Discounted Cash Flow (DCF) model We use a two-stage DCF model with explicit forecasts to 2015. Free cash flows (FCFs) (Operating Profit + Depreciation - Capex - Changes in working capital) are calculated and discounted in order to estimate the fair value of the firm. Cost of equity has been derived by using the Capital Asset Pricing Model (CAPM). We have made the following key assumptions in our model: Risk free rate: 4.79% (3 yr. average of 10 yr. US Treasury Bond Rate) Country Risk Premium: 0.9% Equity Premium: 6.0% Company Beta: 1.31 Cost of equity: 13.55% WACC: 12.40% Terminal growth rate: 1% Based on these assumptions, our estimate of the fair value of equity is AED 4,054.1mn. Current outstanding shares after bonus issue total 1,196 mn. On this basis, our DCF model yields a fair value of AED 3.4 per share. Sensitivity of fair value estimate, by using different rates for terminal cost of capital and terminal growth rates, are shown below: Terminal Cost of Capital 3.4 11.40% 11.90% 12.40% 12.90% 13.40% 0.00% 3.4 3.3 3.2 3.2 3.1 0.50% 3.5 3.4 3.3 3.2 3.2 1.00% 3.6 3.5 3.4 3.3 3.2 1.50% 3.7 3.6 3.5 3.4 3.3 Terminal growth 2.00% 3.8 3.7 3.6 3.5 3.4 Source: ADCB research Peer-Based Valuation method For our peer-based multiples valuation, we apply a peer-group average EV/EBITDA multiple for 2008 of 7.3x in order to calculate Arabtec Holding’s enterprise value. This method yields a ex-bonus fair value of AED 7.3 per share.
Load more

Recommended publications
  • MENA Construction Reinstatement of Coverage
    MENA Construction Reinstatement of Coverage Equity | MENA | Construction 18 September 2013 Buy scope over scale, reinstating on GCC contractors Equity Research Faisal AlAzmeh, CFA >> +971 4 425 8217 Reinstating on GCC contractors; DSI stands out as a Buy Research Analyst Merrill Lynch (Dubai) Despite this year’s reacceleration of awards activity, we believe the market is (1) [email protected] overly optimistic on peak-cycle earnings power, and (2) ignoring the risk posed by Ilze Roux >> +27 11 305 5195 stretched receivables. We have an Underperform rating on Arabtec (UAE) and Al- Research Analyst Merrill Lynch (South Africa) Khodari (KSA), but an out-of-consensus Buy on DSI. Perplexingly, the market is [email protected] assuming a strong (and unrealistic) recovery in Arabtec and Al-Khodari’s earnings Macro Research growth while being overly cautious on DSI’s prospects. We believe this provides Jean-Michel Saliba +44 20 7995 8568 an opportunity as DSI’s higher-margin end-to-end solutions business model MENA Economist leaves it well positioned to surprise on the upside. MLI (UK) [email protected] DSI – Buy (PO AED1.55): a premium player at a discount In our view, DSI offers the best exposure to the sector’s reaccelerating activity, which is mirrored in the 70% YTD backlog growth. The company’s experience in Table 1: Reinstated POs and Earnings high-margin end-to-end solutions is likely to allow DSI to increase its exposure to Al-Khodari DSI Arabtec power and rail projects, which have higher margins than civil contracts more U/P Buy U/P common at peers.
    [Show full text]
  • Arabtec and Samsung Engineering Sign Memorandum of Understanding for a New Joint Venture Company
    Arabtec and Samsung Engineering sign Memorandum of Understanding for a new Joint Venture Company . New JV Company – Arabtec-Samsung Engineering - will capture growth opportunities in the oil & gas, power and infrastructure sectors . Under the terms of the MoU: o Arabtec and Samsung will have an exclusive relationship throughout MENA in these sectors o Arabtec to own 60% and Samsung Engineering to own 40% -the new company to be incorporated and headquartered in Abu Dhabi o ‘Centre of Excellence’ to be established in Abu Dhabi for training Emirati engineers of the future Abu Dhabi, UAE, 17 April 2013 – Arabtec Holding, a leading construction company in MENA, and Samsung Engineering Co., (Samsung Engineering) , Korea’s first and largest engineering company, announce the signing of a Memorandum of Understanding (MoU) for a new joint venture company (‘JV Company’). The new JV Company will exclusively undertake large-scale projects in oil & gas, power and infrastructure in the Middle East and North Africa (MENA). The JV Company will be called Arabtec-Samsung Engineering, and will be incorporated and headquartered in Abu Dhabi. Arabtec will be a 60% shareholder in the new company with Samsung Engineering holding the remaining 40% interest. The management team of the new JV Company will consist of experienced executives from Samsung Engineering and Arabtec and will be appointed shortly. The JV Company will benefit from Arabtec’s extensive regional network, top tier project managers and skilled workforce along with a proven track-record of delivering technically-complex construction projects in the region as well as Samsung Engineering’s leading market position in oil & gas, power and infrastructure.
    [Show full text]
  • Arabtec Holding PJSC and Its Subsidiaries Condensed
    Arabtec Holding PJSC and its subsidiaries Condensed consolidated interim financial information for the six-month period ended 30 June 2019 (Unaudited) Arabtec Holding PJSC and its subsidiaries Pages Report on review of condensed consolidated interim financial information 1 - 3 Condensed consolidated interim statement of financial position 4 Condensed consolidated interim statement of profit or loss 5 Condensed consolidated interim statement of comprehensive income 6 Condensed consolidated interim statement of changes in equity 7 Condensed consolidated interim statement of cash flows 8 - 9 Notes to the condensed consolidated interim financial information 10 - 38 Deloitte & Touche (M.E.) Building 3, Level 6 Emaar Square Downtown Dubai P.O. Box 4254 Dubai United Arab Emirates Tel: +971 (0) 4 376 8888 Fax:+971 (0) 4 376 8899 www.deloitte.com August 17th, 2016 REPORT ON REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION The Board of Directors Arabtec Holding PJSC and its subsidiaries Dubai United Arab Emirates Introduction We have reviewed the accompanying condensed consolidated interim statement of financial position of Arabtec Holding PJSC (the “Company”) and its subsidiaries (collectively referred to as the “Group”) as at 30 June 2019 and the related condensed consolidated interim statements of profit or loss, comprehensive income, changes in equity and cash flows for the six-month period then ended, including a summary of significant accounting policies and other explanatory information. Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.
    [Show full text]
  • Initial Public Offerings 2018 Second Edition
    Initial Public Offerings 2018 Second Edition Contributing Editors: Ilir Mujalovic & Harald Halbhuber With contributions by: CONTENTS Preface Ilir Mujalovic & Harald Halbhuber, Shearman & Sterling LLP Foreword Sean C. Davy, The Securities Industry and Financial Markets Association (SIFMA) 1 General chapters Paving the road for SMEs’ access to public equity markets Cédric Pacheco, Association for Financial Markets in Europe (AFME) 7 Going public in the USA: An overview of the regulatory framework and capital markets process for IPOs Ilir Mujalovic, Harald Halbhuber & Rupa Briggs, Shearman & Sterling LLP 14 An overview of structuring and governance considerations for Initial Public Offerings in the USA, Stacy J. Kanter & Michael J. Hong, Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates 30 Trends shaping an evolving IPO market, Pippa Bond, Daniel Forman & Lily Desmond, Proskauer Rose LLP 40 Country chapters Australia Daniel Scotti & Nicole Sloggett, MinterEllison 56 Bermuda David Cooke & Edward Rance, Conyers Dill & Pearman Limited 68 Brazil Fernando Zorzo, Pinheiro Neto Advogados 75 British Virgin Matthew Gilbert, Greg Knowles & Richard May, Maples and Calder 86 Islands Cayman Islands Suzanne Correy & Daniel Lee, Maples and Calder 93 China Shiwei Zhang, Zhong Lun Law Firm 102 Denmark Rikke Schiøtt Petersen, Chantal Pernille Patel & Mads Robert Bording Jensen, Gorrissen Federspiel Private Limited Partnership 111 Finland Tarja Wist, Maria Pajuniemi & Emilia Saloranta, Waselius & Wist 121 France Jérôme Lombard-Platet & Gacia Kazandjian, DS Avocats 130 Germany Dr. Achim Herfs & Dr. Anna Schwander, Kirkland & Ellis International LLP 143 Hong Kong Angel Wong & Agatha Chun, ONC Lawyers 154 India Venkatesh Vijayaraghavan, Juhi Singh & Pratichi Mishra, S&R Associates 165 Ireland Matthew Cole, A&L Goodbody 177 Italy Marco Lantelme, BSVA Studio Legale Associato 187 Japan Kagayaki Funakoshi & Shunsuke Aoki, Anderson Mori & Tomotsune 199 Mexico Ricardo Maldonado, Patricio Trad & Manuel Echave, Mijares, Angoitia, Cortés y Fuentes, S.C.
    [Show full text]
  • Initiation of Coverage Report
    Research Department Initiation of Coverage Report 20 September 2007 Arabtec Holding PJSC Buy Something To Build On General Information Summary RIC ARTC.DU Strong local presence and a healthy backlog Bloomberg code ARTC UH Arabtec Holding, formerly Arab Technical Construction Company, was established in Dubai Market cap AED3,588 mil in 2004 with the principal objective of investing in the construction sector through the Shares outstanding 598 mil acquisition of contracting and related companies in the UAE and the MENA region. In Enterprise value AED3,661 mil August 2004, the company offered 55.0% of its shares in an IPO that was oversubscribed Net debt AED73.3 mil 74 times. The company listed its shares on the Dubai Financial Market (DFM) on January Free float 55.0% 4, 2005. Arabtec’s local outstanding backlog stood at around AED16.2 billion by the end of July 2007, including all local and international activities. Valuation Geographical expansion on the rise Target price AED7.60 Arabtec Holding is undertaking an aggressive regional expansion plan, mainly targeting Market price AED6.00 Asian and Middle Eastern markets. Arabtec Holding was able to secure contracts in Qatar, Upside potential 26.67% Pakistan, and Mauritius through the establishment of new subsidiaries and joint ventures in the field of construction and related works as well as the manufacture and Share Price Information transportation of ready mix. Arabtec’s share in regional joint venture projects reached a Absolute *Relative value of AED2.3 billion as of 1H07, with more expected project awards in the pipeline. YTD ∆ 30.9% 28.6% 1H07: Robust growth 1M ∆ 3.8% 1.4% Arabtec Holding released 1H07 results posting a net income of AED173.4 million, up 3M ∆ 0.3% 6.5% 52.7% from AED113.6 million in 1H06, due to a 25.1% YoY increase in revenues on the 12M ∆ 39.9% 52.9% back of recording more construction contracts as well as the acquisition of new Av.
    [Show full text]
  • 2Nd June, 2008.Pmd
    Overseas Information Overseas Market Information UAE DANA GAS coming up with 19 New Drilling Units in Egypt UAE-based Dana Gas is planning to step up its drilling unit in Egypt for doubling its natural gas reserves in the North African segment. Dana Gas, which relies on Egypt for its major revenue said it planned to spend more than $ 170 million for drilling 19 new wells in Egypt before the end of the year, compared with 10 wells with investments of $ 56 million in 2007. Egypt holds Africa’s third-largest natural gas reserves after Algeria and Nigeria. The gas sector in Egypt is expanding rapidly. This exploration and development programme could potentially double the size of Egypt’s reserves. Also, the said firm is investing about $ 500 million in Egypt and Iraq’s Kurdish region this year to boost natural gas output. The firm posted a near 15 per cent rise in fourth-quarter revenue compared with the third quarter on higher production from its Egyptian gas operations and higher prices. Earlier in November 2006, Dana Gas started its operation in the Egyptian Sector after its acquisition of Canada’s “Centurion International” for an amount of C$ 1.15 billion (US$ 1.13 billion). Apart from Dana Gas, similar firms from Abu Dhabi would develop 15 exploration wells and four development wells at the Komombo concession in Upper Egypt and two concessions in the Nile Delta. Five of the wells at the Sidi Salem Formation would target depths of 4,000 metres (13,120 ft). Dana Gas P.O.
    [Show full text]
  • FTSE Emerging
    FTSE Russell Publications 19 August 2017 FTSE Emerging Indicative Index Weight Data as at Closing on 30 June 2017 Index Index Index Constituent Country Constituent Country Constituent Country weight (%) weight (%) weight (%) 3SBio (P Chip) 0.03 CHINA Asian Paints 0.13 INDIA Beijing Enterprises Holdings (Red Chip) 0.06 CHINA Aamal Co. Q.S.C. 0.01 QATAR Aspen Pharmacare Holdings 0.2 SOUTH Beijing Enterprises Water Group (Red Chip) 0.08 CHINA ABB India 0.03 INDIA AFRICA Beijing Jingneng Clean Energy (H) 0.02 CHINA Aboitiz Equity Ventures 0.09 PHILIPPINES Asseco Poland SA 0.03 POLAND Beijing North Star (H) 0.01 CHINA Aboitiz Power 0.03 PHILIPPINES Assore Ltd 0.01 SOUTH Belle International (P Chip) 0.12 CHINA Abu Dhabi Commercial Bank 0.1 UAE AFRICA Bengang Steel Plates (B) <0.005 CHINA ACC 0.03 INDIA Astra Agro Lestari 0.01 INDONESIA Berjaya Sports Toto 0.01 MALAYSIA Acer 0.04 TAIWAN Astra International 0.35 INDONESIA Berli Jucker 0.04 THAILAND Acron JSC 0.01 RUSSIA Astro Malaysia Holdings 0.03 MALAYSIA Bharat Electronics 0.04 INDIA Adani Enterprises 0.01 INDIA Asustek Computer Inc 0.17 TAIWAN Bharat Forge-A 0.04 INDIA Adani Ports and Special Economic Zone 0.12 INDIA Attacq Limited 0.02 SOUTH Bharat Heavy Elect .LS 0.03 INDIA AFRICA Adani Power 0.01 INDIA Bharat Petroleum Corp 0.17 INDIA AU Optronics 0.11 TAIWAN Adaro Energy PT 0.04 INDONESIA Bharti Airtel 0.2 INDIA Aurobindo Pharmaceuticals 0.07 INDIA Aditya Birla Nuvo 0.02 INDIA Bharti Infratel 0.08 INDIA AVI 0.06 SOUTH Administradora Fibra Danhos S.A.
    [Show full text]
  • Arabtec Holding Company UAE Construction Sector
    Arabtec Holding Company UAE Construction Sector Initiation of Coverage August 15, 2006 Building a Nation STRONG BUY • Arabtec Holding PJSC formerly known as Arab Technical Construction Com- pany (ATCC) was established as a special purpose vehicle to facilitate a strat- Target Price (AED) 5.0 egy of investment in the construction sector, and capitalization on an ongoing boom, through acquisition of stakes in existing companies within the U.A.E. Recent Price (AED) 4.0 Following inauguration in 2004, the decision was taken to acquire Arabtec (ATCC), a leading construction company within the UAE, sporting over 30 Upside Potential 25% years of experience and contacts, for a total consideration of AED400 million. Investment Grade Growth • The construction sector boom in the UAE commenced in the late 1970s in Previous Target (AED) NA response primarily to massive population growth. The latter continues to prove a primary growth engine, with the sector kicking off on a new aggres- sive growth phase in 2003, fuelled by both an oil price driven explosion of Share Data liquidity and legislative reform permitting expatriate freehold rights. To date, Exchange Rate AED3.67/US$ developmental based projects, officially announced in the UAE, are estimated to be worth ca.US$340.8 billion of which the construction segment captures a Reuters Code ARTC.DU bulk 78%, equivalent to US$266.7 billion. Arabtec is estimated to enjoy a ca. Most Recent Shares (000) 520,000 3.5% share of this market. Par Value/share AED1 • We have calculated the company’s current backlog at an impressive ca. Financial Year December AED6.86 billion spread across 16 projects, all of which are situated in Dubai, with the exception of the Abu Dhabi Investment Authority– ADIA headquar- Mkt.
    [Show full text]
  • International Petroleum Investment Company PJSC and Its Subsidiaries
    International Petroleum Investment Company PJSC and its subsidiaries BOARD OF DIRECTORS’ REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2015 International Petroleum Investment Company PJSC and its subsidiaries BOARD OF DIRECTORS’ REPORT 31 DECEMBER 2015 International Petroleum Investment Company PJSC and its subsidiaries BOARD OF DIRECTORS’ REPORT For the year ended 31 December 2015 The Board of Directors presents the consolidated financial statements of International Petroleum Investment Company PJSC (IPIC or the Company) and its subsidiaries (the Group) for the year ended 31 December 2015. Activities IPIC is a public joint stock company established on 29 May 1984 in Abu Dhabi, United Arab Emirates (“UAE”) by Emiri Decree No 3/1984 (subsequently replaced by Emiri Decree No 2/1986) and is wholly owned by the Government of the Emirate of Abu Dhabi. The Company’s registered head office is P.O. Box 7528, Abu Dhabi, UAE. The principal activity of the Company is to invest, on a long-term basis, in overseas energy and energy-related assets and to undertake infrastructure projects. At year-end, the Company has direct and indirect equity interests in various subsidiaries across the world: 64% interest in Borealis AG (“Borealis”) based in Austria, 100% interest in Nova Chemicals Corporation (“Nova”) based in Canada, 100% interest in Compañía Española de Petróleos SA (“CEPSA”) based in Spain and 98.46% interest in Aabar Investments PJS (“Aabar”) based in UAE. Aabar is a diversified investment company with investments across a broad range of sectors including aerospace, construction, commodities, financial services and real estate. Further, Aabar has direct and indirect equity interests in various subsidiaries across the world: 100% interest in Falcon Private Bank (“Falcon Bank”) based in Switzerland, 70% in Palm Assets based in Morocco and 36.11% interest in Arabtec Holding PJSC (“Arabtec”) based in UAE.
    [Show full text]
  • Europe, Middle East & Africa
    September 28, 2007 Europe, Middle East & Africa: Multi-Industry September 28, 2007 Europe, Middle East & Africa: Multi-Industry Initiating coverage in the Middle East: We select our top ten beneficiaries of the boom Geared to infrastructure investment Best buy ideas The Middle East is experiencing an economic Emaar Properties ACTION boom, born out of structural reform and Aldar Properties supported by the strong liquidity effects of high 12-month Potential oil prices, low interest rates and a weak US dollar. Union Properties Price price target up/downside Buy list stocks Equity markets, having overshot in 2005, now Emaar Properties Dh10.70 Dh16.2 51% Arabtec Holding Aldar Properties Dh7.35 Dh14.4 96% look inexpensive relative to mainstream emerging Union Properties Dh3.16 Dh5.9 87% Arabtec Holding Dh6.25 Dh8.6 38% markets. Tabreed Tabreed Dh2.43 Dh3.2 32% Tamweel Dh4.0 Dh7.0 75% We initiate coverage of 30 stocks in the UAE and Tamweel Abu Dhabi Nat'l Hotels Dh5.85 Dh7.6 30% Agility KD1.82 KD2.4 32% Turkey, which provide exposure to the theme of Aramex Dh2.55 Dh3.4 33% Abu Dhabi National Hotels infrastructure development in the region. Our Dubai Financial Market Dh3.14 Dh4.1 31% coverage stocks span sectors including real estate Agility Sell list stocks Union Cement Dh4.74 Dh4.0 -16% development, construction, building materials, National Cement Co Dh9.65 Dh8.0 -17% Aramex RAK White Cement Dh2.14 Dh1.9 -11% utilities, mortgage finance, logistics and Gulf Cement Dh6.45 Dh5.4 -16% transportation. Together, they represent over 80% Dubai Financial Market of the non-financial market cap of the Dubai Financial Market and c.40% of the non-financial Best sell ideas stocks of the Abu Dhabi Securities Market that UAE cement sector: can be purchased by non-GCC entities.
    [Show full text]
  • Arabtec to Increase Its Ownership of Target Engineering Construction Co
    أرابــــتــــك الــقـــابـــــضـــــة )ش.م.ع.( Arabtec Holding (PJSC) Arabtec to Increase its Ownership of Target Engineering Construction Co. to 98% Abu Dhabi, UAE, 26th November 2013 – Arabtec Holding, a leading engineering and construction group specialising in complex projects in the Middle East and North Africa region, announced today that it has entered into a definitive agreement to increase its stake in Target Engineering Construction Co. LLC to 98%, with senior management retaining the remaining 2% stake. Established in 1975, Target Engineering is one of the leading single source engineering, procurement and construction (‘EPC’) contractors, focused on the oil & gas, power and marine sectors with operations in the United Arab Emirates, Qatar, the Kingdom of Saudi Arabia and other countries. Arabtec acquired 60% of Target Engineering in 2007, and the acquisition of a further 38% for AED 270 million supports Arabtec’s strategic expansion in EPC in the oil & gas and power sectors. The transaction will be funded by the proceeds from Arabtec Holding’s recent rights issue. This acquisition follows the recent launch of Arabtec Samsung Engineering, a joint venture company that will provide EPC on large-scale multi-billion dollar projects in the oil and gas, power and related infrastructure sectors in the MENA region, which marked a major milestone in Arabtec’s ambitious strategy to expand into the oil and gas sector. The oil and gas sector is a key driver of long-term economic growth in the region, with the top 50 projects currently planned or already under way across the region valued at US$1.56 trillion.
    [Show full text]
  • Arabtec Announces the Retirement Of
    أرابــــتــــك الــقـــابـــــضـــــة )ش.م.ع.( Arabtec Holding (PJSC) At a contract value of AED 1.037 billion Arabtec Construction selected to build over 1,500 townhouses for Emaar Properties in Dubai Dubai, UAE, 5th March 2014 – Arabtec Holding PJSC, a leading engineering and construction Group of companies specialising in complex projects in the Middle East and North Africa region, announced today that its subsidiary Arabtec Construction has been awarded a contract to construct over 1,500 townhouses developed by Emaar Properties, the global developer of iconic real estate assets, in Reem, the master- planned community, in Dubai for a total value of AED1.037 billion. The 1,582 townhouses are part of the Mira community, the first phase of Reem, which was launched to strong customer response. The villas come in four different types, covering a total built area of 337,805 sq.m. The villa community is designed by BH.NS Engineering Consultant. Hasan Abdullah Ismaik, Managing Director and CEO of Arabtec Holding, commented: “We are indeed privileged to be selected by Emaar for yet another major residential development. This new project is a quality addition to our long history of cooperation. Emaar’s continued trust in Arabtec is testament to our established strength in delivering major developments on time and with high quality.” Arabtec was engaged in the construction of a number of Emaar’s iconic projects, including Burj Khalifa, the world’s tallest building, The Address Downtown Dubai, Emirates Hills, and the luxury Polo Homes in Arabian Ranches, among others. Ismaik added: “We are pleased to continue our long-time cooperation with Emaar and our mutual contribution to the urban development of the UAE.
    [Show full text]