An Arabtec construction site in Dubai
An Arabtec construction site in Dubai. Image Credit: Virendra Saklani/Gulf News

Dubai: Share prices of Arabtec Holding jumped nearly 9 per cent on Sunday after media reports said the construction company had hired banks to advise on its merger with Trojan Holding.

Arabtec’s share prices ended at Dh1.96 — an 8.89 per cent increase, to reach their highest closing price since early May.

The stock was the among the most actively traded on the Dubai bourse.

The spike came after Reuters on Thursday reported that Arabtec and Trojan appointed UBS and Shuaa Capital as advisers on the potential merger between the two. The report cited unidentified sources, and Arabtec is yet to publicly confirm or deny the news.

The report comes just a month after Arabtec, the construction firm that helped build the world’s tallest tower, confirmed that it is in discussions about possibly merging with Abu Dhabi-based Trojan.

In early September, the contractor said that a review has commenced “of the possibility of combining their construction businesses.”

Analysts said at the time that a merger would allow the two companies to gain market share in an environment that is still challenging and in need of consolidation.

According to data on Trojan Holding’s website, the company was created in 2012, and has worked on the construction of several projects that include the Rove Hotel in Dubai, Yas Acres in Abu Dhabi, Cranleigh School, and the Viceroy Hotel, among others.