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Depa abandons $260mn fundraising plan

June 22, 2014 Staff

Dubai-based fit-out contractor Depa has abandoned plans to raise up to $260mn through the use of convertible bonds which could have diluted its share base by up to 45%.

The firm had announced the plan to issue the bonds with a view to shoring up its balance sheet after a couple of years of losses and to pursue acquisition opportunities.

However, it issued a statement last Thursday (19 June) ahead of this week's AGM on 25 June, stating that after considering the matter further and giving "regard to current market conditions and other considerations", its board has decidedd not to pursue the proposed bond issue. 

Dubai-based Arabtec bought a 24% stake in Depa in November 2012 for $65.8mn and at last year's AGM former Arabtec CEO Hasan Ismaik was appointed as chairman, alongside three other Arabtec board members (including Arabtec's interim CEO Mohamed Fahim).

Former Depa CEO and co-founder Mohannad Sweid left the company in November 2013. He was replaced by interim CEO Nadim Akhrass.


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Source: Construction Week (United Arab Emirates)

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