Arabtec shareholders at a crossroads over liquidation | ZAWYA MENA Edition:
Nothing would left for the shareholders of construction firm Arabtec after it announced liquidation as its net asset value (NAV) is negative.
Total assets of Arabtec stand at Dh7.379 billion while total liabilities are Dh10.137 billion. "For all practical purposes, the NAV of Arabtec seems negative and shareholders are likely to see their shares expire worthless," said Devesh Mamtani, chief market strategist at Century Financial.
He said Arabtec shareholders are not likely to get much from its assets as their market value will be much lower in case of a bulk sale.
On September 30, Arabtec Holding shareholders approved the board of director's plan to file for liquidation due to heavy financial losses following the outbreak of Covid-19.
"Unfortunately, against a backdrop of adverse market conditions, we regret to inform you that Arabtec shareholders voted to adopt a plan of liquidation and dissolution due to the company's untenable financial situation," the company said in a statement.
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