ASGC, the largest construction firm headquartered in Dubai, UAE, has confirmed that it will buy a 15 percent interest in Costain, the UK-based construction company, as part of Costain’s $100 m cash-raising equity issue.
ASGC also entered into a contractual contract to buy 41,666,666 new ordinary shares at a price of £25 million, in which it would retain 15.2% of Costain’s expanded share value.
Bishoy Azmy, Chief Executive Officer of ASGC, said: “We are also trying to diversify our priorities and see long-term, sustainable development prospects in UK infrastructure. We see this change as a way to profit from the anticipated growth in UK capital investment and conclude that Costain should be well placed to take advantage of it.
In a released quotation1, Alex Vaughan, CEO Costain, said: “We are delighted to have received substantial funding from creditors for this fundraising. With a strengthened balance sheet and an optimistic long-term view for UK infrastructure, Costain would be best positioned to take advantage of the considerable growth opportunities that lie ahead of us.”
ASGC was established in 1989 and has developed iconic building ventures such as the Coca-Cola Arena in Dubai, the Sustainability Pavilion, the HH Sheik Mohamed Bin Rashid Public Library, the extension of Dubai International Airport and many others. The company has an annual turnover of more than $1 billion and 18,000 employees. ASGC controls the bulk of the supply chain and utilizes in-house services that contribute to good product efficiency and timely production.
