Tabarak Investment reinforces commitment to DSI and acquires majority shares of former CEO
Tabarak Investment LLC has acquired the majority shares of Former Chief Executive Officer, Khaldoun Tabari, according to the latest announcement by Drake & Scull International PJSC.
The transaction reaffirms the commitment of Tabarak Investment LLC to the DSI brand and the promising outlook of the Company upon completion of the capital restructuring programme which was approved by the shareholders at the Annual General Assembly Meeting held on 4 May 2017.
The company continues to review and optimise its organisational structure by merging and integrating core functions across operating segments to reduce overheads, streamline costs and to improve the bottom line performance.
“We are pleased to see Tabarak Investment reaffirm their unwavering commitment to the company. With their unyielding support, we will aggressively continue to execute our turnaround strategy and undertake key business transformations and strategic initiatives in collaboration with all our stakeholders. I would like to reassure all our shareholders that the new management team is fully dedicated and geared to prepare a new phase of financial & operational recovery,” said Wael Allan, CEO, Drake & Scull International PJSC.
The company concluded a series of key management appointments at both corporate and subsidiary levels and the new management team has been recently complemented with the appointment of Feras Kalthoum as Acting Chief Financial officer of the Group.
The company advanced with the capital restructuring programme and received today from the Securities and Commodities Authority (SCA) further instructions to proceed with the final regulatory preparations in order to fulfil the approval requirements and to initiate the 75 per cent capital reduction.
“Despite the short-term challenges, the Company is well positioned to benefit from its leadership position in the MEP sector and to secure profitable projects in the UAE market in the near future,” added Allan.
Phase one of the capital restructuring programme, capital reduction, is expected to be completed within six to seven weeks. Upon completion of phase one, the Company will instigate the execution of phase two of the programme, capital increase, which includes the AED 500 million capital increase to accelerate the entry of Tabarak Investment LLC as a major strategic investor in the Company.
“I look forward to being part of the new management team assigned to stabilise the business and resolve the Group’s financial challenges. The completion of the capital restructuring programme is essential to resolving the liquidity challenges of the Company and to rebalance the Capital structure of the Group. Our immediate priority is to plug-in our working capital deficit; improve collection to shore-up liquidity. Our short-term goals are to streamline our business, bolster liquidity, optimise governance and transparency, and secure high-potential projects. The UAE market remains buoyant and we expect to progress steadily with our turnaround strategy throughout the second half of the year,” said Feras Kalthoun, Acting CFO, Drake & Scull International PJSC.
The initial projected timeline of the capital restructuring programme has been deferred by a period of one month and the company now expects to complete the programme by the end of Q3 2017.
“The acquisition of Tabari’s shares is a voice of confidence in the DSI brand and the longstanding track record of the Company particularly in the MEP sector in the UAE. The strategic synergies between DSI and Tabarak will be pivotal to the success of the turnaround strategy set forth by the Company earlier this year. We are optimistic about the prospects of the Company in the long term and we are keen on the completion of the Capital restructuring programme to assist the Company during this challenging time, yet promising outlook,” said Ahmed Kilani, CEO, Tabarak Investment LLC.