Aabar Investments PJSC (AABAR) raising its stake in Arabtec Holding Co. (ARTC) may signal its intention to take control of the Dubai builder after pulling a $1.74 billion bid two years ago, according to ING Investment Management.
Aabar, the Abu Dhabi government company which owns stakes in Daimler AG (DAI) and UniCredit SpA (UCG), increased its ownership in the United Arab Emirates’ biggest construction company to 5.28 percent, according to data posted on Dubai’s stock market. The shareholding is listed under Aabar Petroleum Investments Co., which in 2008 sold most of its energy assets to Mubadala Development Co., an investment company owned by the Abu Dhabi government. Emirates Construction Material Co. owns a 5.03 percent stake, the data shows.
“It’s obvious from an investment size perspective that Aabar will not stop at 5.28 percent,” said Yazan Abdeen, who helps oversee about $250 million as a fund manager at ING in Dubai. “So it has already acquired more and is in the consolidation phase now. I expect this percentage will increase considerably, which will entitle Aabar for control of Arabtec.”
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