chief executive of arabtec’s construction unit to step down
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

Chief executive of Arabtec’s construction unit to step down

Egypt Today, egypt today

Egypt Today, egypt today Chief executive of Arabtec’s construction unit to step down

Raja Ghanma
Dubai - Arab Today

Raja Ghanma, the chief executive of Arabtec Construction, is to step down from the company.
Mr Ghanma, who has been with the company for 23 years, is to leave the company by the end of next week.
It is understood that Mr Ghanma will not be replaced in the short-term, with his responsibilities instead being shared jointly by Arabtec Holding’s group chief executive Hamish Tyrwhitt and other members of the Arabtec Construction’s management team.
In an internal memo sent to staff, Mr Trywhitt said: "On behalf of the group’s board of directors and our management, I would like to thank Raja for his contribution to the company over the years. I’m sure you will all join me in wishing him every success for the future."
When contacted by The National, Mr Ghanma declined to comment on his position.
Mr Ghanma is a well-known figure within Arabtec. He joined as a construction manager in the early 1990s and had helped to launch several business divisions, as well as joining the board of Arabtec Holding for a period.
He has been the chief executive of Arabtec Construction since April 2015. Before that, he was its chief operating officer.
However, since he is no longer a member of the board of Arabtec Holding or its executive team, the company is not obliged to inform the Dubai Financial Market of his departure.
Following publication of the company’s third-quarter results in November last year, when the firm declared a Dh222.5 million loss – its eighth quarterly loss in succession – Mr Ghanma said that the company was making headway in its turnaround efforts.
He said that its costs had been trimmed significantly, and argued that he believed the company would return to profit "sooner rather than later", but argued that it was difficult to give a precise time as it continued to deal with legacy projects.
Subsequently, however, the company has posted unaudited figures for the whole of 2016 that suggest much heavier losses in the fourth quarter.
Losses attributable to its parent company had stood at Dh458m for the first nine months of 2016, but full-year losses were more than Dh3.4 billion, suggesting a loss of about Dh3bn in the final quarter. Arabtec blamed this on "a combination of impairment charges on high-risk items, which amounted to Dh2.8bn in total, as well as recurring, non-recurring and operational expenses".
The scale of its losses have led to it embarking on a recapitalisation programme to inject a further Dh1.5bn into the business through a rights issue – a move that was approved by regulators on Wednesday.
An analysts’ note published by Egypt-based Naeem Research on Thursday said that the recapitalisation was a positive move that will allow the company to get rid of some of the "froth" from its balance sheet.
However, it said that the level of dilution that minority shareholders (those other than Aabar Investments, which currently holds 36.11 per cent) will suffer will depend on the terms of the rights issue, which have yet to be announced.
The note argued that the issue "should get priced at a discount" to the company’s share price at the time the recapitalisation was announced earlier this month, as this will encourage shareholders to participate.
"On the contrary, if the issue gets priced at a premium [to market price], subdued interest could result in a run on the stock; with shareholders [who decide not to subscribe] having no option but to cash out" before the issue, it said.
The terms of the rights issue are due to be announced next month, at the same time as the company files fully audited accounts for 2016.


Source: The National

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

chief executive of arabtec’s construction unit to step down chief executive of arabtec’s construction unit to step down



GMT 14:00 2014 Tuesday ,04 November

Bashir, Salva Kiir hold talks

GMT 20:47 2011 Friday ,24 June

TV\'s Columbo, Peter Falk, dead at 83

GMT 14:55 2011 Tuesday ,03 May

Tank-backed Syrian forces take control of Daraa

GMT 06:30 2011 Monday ,06 June

William and Kate to live in Kensington Palace

GMT 08:09 2013 Thursday ,08 August

Toshiba introduces a wide range of laptops, Satellite

GMT 13:03 2012 Monday ,06 February

\'Jack and Jill\' sets new low for comedies

GMT 13:38 2017 Sunday ,12 March

‘Kong: Skull Island’ film review

GMT 11:44 2015 Monday ,24 August

Maldives ex-president Nasheed back in jail

GMT 14:43 2015 Sunday ,24 May

Sisi's participation in WEF highly important

GMT 22:40 2011 Saturday ,27 August

Saudi prince in Mogadishu

GMT 01:24 2015 Monday ,23 March

Al-Araby, Algerian PM discuss regional crisis

GMT 17:47 2016 Wednesday ,01 June

Egypt, Hungary probe anti-suicide efforts

GMT 00:32 2016 Tuesday ,01 November

Crown Prince of Abu Dhabi meets President of Belarus

GMT 06:41 2011 Monday ,12 December

Right diet fixes all dental problems

GMT 07:36 2017 Monday ,31 July

Bin Salman receives leader of Sadrist movement

GMT 15:30 2014 Thursday ,24 April

Four Seasons launches 6 figure jet tour
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday