Dubai contractor Drake and Scull postpones shareholders meeting

Dubai contractor Drake and Scull International (DSI) has postponed its shareholders meeting to October 4, it announced in a brief bourse statement.

Shareholders of the loss-making company Drake & Scull were scheduled to meet on September 27 to decide whether to dissolve the company.

“The quorum of the general assembly meeting of DSI has not been met, therefore, another meeting will be held on Thursday, October 4 at 4pm at the Westin Hotel, Jumeirah Dubai,” the statement released on Thursday said.

The contractor, which posted a second-quarter net loss of Dhs181.1m ($49.3m), said it was calling a general assembly on September 27 under an article of UAE company law which requires firms to vote on whether they should continue operating if their accumulated losses have reached half of their issued share capital.

DSI however clarified that its board and management would put forth their full efforts to ensure the company continued operating.

The general assembly vote “is a mere legal requirement” and a “procedural step that needs to be taken and doesn’t mean that there is an intent to dissolve the company prior to the expiry of its term,” a statement said.

Read more: Dubai’s DSI says it will seek to keep operating as shares slide

Drake & Scull has been hit by a slowdown in the regional construction sector over the past few years.

In a bid to turn around operations, the company also appointed a new CEO of the group and its subsidiaries in August – its second executive in less than five months.

Read more: Dubai’s Drake and Scull replaces CEO, blames ‘rumours’ for share price drop

Its biggest shareholder is Ajman Bank with 13.06 per cent, according to stock exchange data. Other shareholders include local private equity firm Tabarak Investment and local businessman Adel Abdulhamed Ibrahim al-Hosani, according to Thomson Reuters data.