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Arabtec to buy major European firm

Arabtec logo is seen on buildings under construction in the Marina area of DubaiArabtec Holding Co, the United Arab Emirates’s biggest listed construction company, is in talks to buy a large European company and may tap the bond market to pay for the deal, Chief Executive Officer Hasan Ismaik said.

Arabtec may announce a transaction in the second half, the CEO said in an interview at the Cityscape Abu Dhabi conference today. The contractor is trying to purchase companies with international operations to help it carry out projects with high returns, Ismaik said week.

“We are now looking into an acquisition and we could do it in partnership with others,” he said. “When we get there, we will be looking for financial solutions and convertible bonds could be one.”

Last month, Arabtec entered an agreement with Egypt’s Defense Ministry to build 1 million affordable homes with a total value of $40 billion. The company, which helped build the world’s tallest tower, has almost tripled in Dubai trading in the past six months as a resurgent a U.A.E. real estate market adds to earnings.

The shares, currently trading at 7.9 dirhams, are worth 14 dirhams to 16 dirhams, Ismaik told reporters.-Bloomberg