Dubai: Amlak
Books: Stephen Hazrill
Drake & Scull International (DSI), a leading regional engineering and services company, announced yesterday (June 18, 2017) announced that Tabarak Investments has acquired the majority of the shares of former CEO Khaldoon Tabari. The move underscores Tabarak Investment's commitment and confidence in the Drake & Scull International (DSI) brand, especially in light of the positive prospects that are beginning to emerge following the completion of the capital restructuring program approved by shareholders at the General Assembly held on May 4, 2017.
Tabarak Investment continues to be a strong supporter of the DSI brand. Drake & Scull International (DSI) continues to move forward with its efforts to review and improve its organizational structure by consolidating key functions across all operations to reduce overheads, control costs and increase net income.
Recently, a series of capital restructurings have been completed, which were approved by shareholders at the AGM on 4 May 2017. Drake & Scull International PJSC and its subsidiaries have recently completed a series of new senior management appointments, the latest of which was the appointment of Firas Kalthoum as Acting Group Chief Financial Officer (CFO).
Drake & Scull International PJSC (DSI) is well on its way to reviewing and optimizing its organizational structure by consolidating key functions across all operations to reduce overheads, control costs and increase net income.
Drake & Scull International PJSC (DSI) has made progress on its capital restructuring program, receiving today from the Securities and Commodities Authority (SCA) new recommendations to continue final regulatory preparations in order to comply with the approval requirements and commence a capital reduction of 75%.
Drake & Scull International PJSC (DSI) is expected to complete its capital restructuring program by the end of the year. Drake & Scull International PJSC is expected to complete the first phase of its capital restructuring program (capital reduction) within 6-7 weeks, and then proceed directly to the second phase, which includes an AED 500 million capital increase, in a move to accelerate the entry of Tabarak Investments LLC as its strategic partner.
The timeline has been pushed back. <The initial proposed timeline for the capital restructuring program has been pushed back by one month, with Drake & Scull International PJSC expected to complete the restructuring by the end of the third quarter of this year. <Wael Allan, Chief Executive Officer of Drake & Scull International PJSC, said: “We are delighted that Tabarak Investments LLC has joined us in a move that reflects their unwavering commitment to us. With their continued support, we will continue to execute our transformation strategy and undertake a series of strategic shifts across our core businesses, as well as launch more strategic initiatives in collaboration with our shareholders. I would like to emphasize the readiness and commitment of the new management to complete all the necessary preparations to take the company to a new phase of financial and operational recovery.“
Olan added <Mr. Allan added: ”Despite the emerging challenges, we are well positioned to capitalize on our leadership position within the MEP sector to continue winning more rewarding projects in the UAE market in the near future.“
Faras Firas commented: ”The new management is ready and committed to complete all preparations to move the company into a new phase of financial and operational recovery. <Firas Kalthoum, Acting Group Chief Financial Officer, commented: “I am looking forward to joining the new management team of Drake & Scull International PJSC, where I have the opportunity to actively contribute to finding solutions to the company's current financial challenges and stabilizing the business. The completion of the capital restructuring program is a key priority for us, as it is an essential step in overcoming liquidity challenges and rebalancing the capital structure.”
Kalthoum added. <Kalthoum added: “Our priorities today are to close the working capital deficit and optimize collections to enhance liquidity. We are currently working on short-term goals of streamlining the business, enhancing liquidity, improving governance and transparency, as well as entering into high-potential projects. With the UAE market experiencing rapid growth and activity, we expect to continue to make steady progress based on our transformation strategy in the second half of this year.”
Ahmed Kilic said. <Ahmed Kilani, Chief Executive Officer of Tabarak Investments LLC, said: “Our acquisition of Mr. Khaldoon Tabari's shares comes as a result of our high level of confidence in the Drake & Scull International brand, which has a proven track record of quality achievements over many years in the MEP sector in the UAE. Our strategic alliance is central to the success of Drake & Scull International's transformation strategy adopted earlier this year. We are optimistic about the company's long-term prospects and reiterate our commitment to support the completion of the recapitalization process and provide the necessary assistance to get through this challenging phase to reach the desired goals.”
We are excited about the prospects for Drake & Scull International.
