Abu Dhabi fund Aabar Investments has raised its stake in Arabtec Holding to 53 percent, a market official said on Sunday, effectively taking control of Dubai's largest builder after a failed $1.7 billion bid two years ago.
The state-owned fund, which owns stakes in high-profile names such as German carmaker Daimler, commodities trader Glencore and Italy's UniCredit, had bought Arabtec shares through subsidiaries in recent weeks and its stake stood at 10.45 percent in April.
An official at the Dubai Financial Market (DFM) said trade done on May 6, and settled on May 8, had lifted Aabar's position to 53 percent. The new shareholder structure will be updated on the bourse's website on Monday, the official said, speaking on condition of anonymity.
Arabtec shares, which have soared 94 percent year-to-date, slumped 6.4 percent intraday amid fears the company may delist and minority shareholders' interests be overlooked. The stock ended down 5.76 percent.
Aabar rattled investors in 2010 when it delisted from the Abu Dhabi bourse, months after its $1.7 billion effort to buy 70 percent of Arabtec failed. The fund was taken private by its then-majority shareholder, International Petroleum Investments Corp (IPIC).
"I don't think we are dealing with another Aabar/IPIC situation here - and that's probably why retail is selling off - but I do believe that given the important news and price action over the last few trading sessions, Arabtec needs to come out with clarification," said Haissam Arabi, fund manager at Gulfmena Investments.