DUBAI, April 17 Arabtec, the contractor part-owned by Abu Dhabi fund Aabar, signed an agreement with Korea's Samsung Engineering Co to jointly form a new company that will focus on large energy and power-related projects in the region.
The Dubai-based builder, which is planning a $1.8 billion capital increase as part of its expansion drive, said the new firm would be 60 percent owned by Arabtec and headquartered in the oil-rich United Arab Emirates capital of Abu Dhabi.
Samsung Engineering would own the remaining 40 percent, the two companies said in a joint bourse statement on Wednesday.
Under the terms of the agreement, the new firm will exclusively bid for projects in oil and gas, power and infrastructure segments in the Middle East and North Africa, in contracts ranging between $3-$10 billion, the statement said.
Arabtec is keen to expand into the oil & gas construction business and is also set to acquire the remaining 40 percent it does not already own in UAE oil and gas construction firm Target Engineering, according to sources familiar with the plan.
Arabtec replaced its chief executive in February as part of the shake-up led by Aabar, which has been tightening its grip on the group. (Reporting by Praveen Menon; Editing by Dinesh Nair)