Abu Dhabi: Arabtec’s managing director and chief executive officer, Hasan Ismaik, resigned from his position on Wednesday, following a period of weak performance of the company’s stocks on the Dubai Financial Market (DFM), which saw share prices drop from over Dh8 to around Dh4.
Speaking to ‘Gulf News’, Ismaik said, “I have resigned from Arabtec, but I cannot disclose any reasons on why I did so. It was my own personal decision, and I can’t share the reasons.”
“Arabtec is a large company, and I have left it in its best state after my time working there during which I helped it grow,” he added.
Ismaik noted that his decision to resign did not have to do with the performance of the company’s stocks in the market.
In the past 10 days alone, Arabtec shares lost around 40 per cent of their value. On Sunday and Monday, share prices dropped 10 per cent each, marking the daily cap for the maximum drop allowed.
“I hope share prices rise again. I still have shares in the company, and I don’t plan on selling them,” the former CEO said.
Ismaik, who will remain a board member, currently owns a 28.85 per cent stake in the construction giant.
On Wednesday, Arabtec shares on DFM rose 1.9 per cent in value to reach a price of Dh4.30. The company’s stocks also saw strong trade in the market, with its total value of trade reaching 52.6 per cent of total trade on the DFM.
Musa Haddad, equity fund manager at the National Bank of Abu Dhabi’s asset management group, said Ismaik’s decision to resign could impact stock performance positively.
“We need to know the reasons behind his resignation. He is still a board member, and there were discussions that he would be promoted to chairman. We don’t know what’s happening internally, so we need to wait and give time for details to emerge,” Haddad said.
However, he said that Ismaik’s resignation dismisses uncertainty and rumours that have been surrounding the company.
“The good part [about the resignation] is that more information is coming out, so the rumours that were triggering stock prices to go lower are dismissed. On a fundamental basis, there’s nothing wrong with the company; they’re backed by the government, and they’re leading good projects. It’s just about their corporate governance,” Haddad added.
Mohammad Al Faheem, who currently heads the financial division at International Petroleum Investment Co, has been appointed acting CEO.
