Abu Dhabi: Arabtec Holding, the Dubai-based construction company, said it will submit a proposal to increase the number of its board members from five to seven, and to amend the company’s articles of association accordingly.
The proposal will be submitted during Arabtec’s annual general meeting, which will be held on April 20, the company said in a statement on Thursday posted to the Dubai Financial Market where it is listed.
The statement highlighted the decisions made during the company’s board meeting on Wednesday, including a ratification of resuming legal proceedings against Meydan Group to claim the pending amounts due to Arabtec.
In 2009, Meydan cancelled a $1.3 billion contract it had signed with Arabtec and WCT, a Malaysian company, for the construction of a racecourse in Dubai. Arabtec and WCT then launched arbitration proceedings with Meydan in a long-running case, which the joint venture parties eventually won.
The general meeting next month is expected to provide much-needed clarity on Arabtec’s strategy to turn around its financial performance, having reported Dh2.78 billion in net losses in 2015 — a significant fall from the Dh241.6 million in net profits recorded in 2014.
On Thursday, Arabtec’s share prices slid 1.2 per cent to end at Dh1.64.
