Abu Dhabis Al-Jaber Group is in talks with local investors to sell its stake in company
Dubai-based contractor Alec could be getting a new shareholder as Abu Dhabis Al-Jaber Group is in talks with local investors to sell its stake in the company.
The proposed sale is expected to raise about AED2bn ($545m) for Al-Jaber which is in the process of restructuring $1.6bn of debt.
Alec was created from Al-Jabers joint venture South Africas LTA, which was known as Al-Jaber LTA Engineering & Contracting (Alec).
It is one of Dubais most active general contractors and has worked on many high profile projects in the UAE including the Madinat Jumeirah, Dubai Marina Mall, Dubai International Airport, Abu Dhabi International Aiport, Qasra al-Sarab, and Mirdif City Centre.
Its current projects include the expansion of the passenger terminal at Al-Maktoum International Airport, Bluewaters, Bulgari Hotel, Dubai Festival City and Marina Gate.
The potential sale could benefit Alec as it would remove concerns in the market about its finances due to its association with the Al-Jaber Group.
Any change in shareholding at Alec would follow a change in shareholding at another Dubai-based contractor. Australian construction company Cimic, which was formerly known as Leighton, said in an 26 August Australian stock exchange filing that it has entered into an agreement with Habtoor Leighton Groups (HLGs) two other shareholders that will allow Al-Habtoor Holdings to exit the business.
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