DUBAI, United Arab Emirates (AP) — Shares of a leading Dubai construction company that helped build the world’s tallest tower fell after an Abu Dhabi state-run investment firm agreed to buy a controlling stake.
Arabtec Holding shares are down 6.9 percent in the first full trading day since the deal was made public.
The deal will give Aabar Investments a 70 percent stake in the construction company, which helped build the record-beating Burj Khalifa and other Dubai skyscrapers.
Aabar is majority owned by the government of Abu Dhabi. It will pay 6.42 billion dirhams, or about $1.74 billion, for its stake in Arabtec.
Deutsche Bank says the deal’s structure is “highly dilutive,” meaning it cuts the stake held by existing shareholders.