Hasan Ismaik, the former CEO of Arabtec, plans to sell his remaining stake in the Dubai-based construction company, it was reported.
Ismaik will sell his shares only if he is paid at least the price he received when selling a 16% stake to Abu Dhabi-based Aabar Investments in November, a source told Reuters.
This price of AED 5 ($1.36) per share, however, is significantly higher than the price the stock is currently trading at, and Arabtec shares haven’t closed at AED 5 since June 12, it was reported.
“Ismaik will not sell the shares in the market which is still weak. But if he gets an offer at a good price, he will sell,” the source said, declining to be named.
The former chief executive’s remaining stake is worth around $540 million at current market prices, representing 11.8% of the company.
Aabar Investments has become the largest shareholder in Arabtec, hiking its stake to 34.93% after buying shares from Ismaik, as per a stock market announcement on November 11. The firm has wielded its influence to win the contractor several major projects, including the $40 billion contract to build a million homes in Egypt.
Arabtec has fared poorly in the third quarter of 2014, with profits down 32% from the same period last year. The results were attributed to higher costs associated with company-wide restructuring following Ismaik’s departure.