Depa PLC (“Depa”), the leading global interior solutions group, notes the recent announcement in connection with the solvency of Arabtec Holding PJSC (“Arabtec”). Depa awaits clarity on the outcome of Arabtec’s discussions and any liquidation application that may be submitted to the competent courts so as to determine the likely impact to Depa.
Depa is neither wholly owned by nor controlled by Arabtec. Whilst Arabtec is Depa’s second largest shareholder (owning 24.18%), the majority of Depa’s shares are held by individuals, funds and institutions not connected with Arabtec. Arabtec has a minority representation on the board of directors of Depa.
On 21 April 2020, Depa announced its consolidated audited financial statements for the year ended 31 December 2019. In these financial statements and in line with the Arabtec Group being a material trading partner to the Depa Group, Depa confirmed it had a financial balance owed from Arabtec of approximately AED 82 million. Depa’s exposure to the Arabtec Group remained at a similar level as at 30 September 2020. To the extent that Arabtec or member(s) of its group enter liquidation, this would likely have a material impact on Depa’s financial performance and financial position.
Notwithstanding the above, Depa continues to pursue its pipeline of opportunities and deliver on its secured projects. Management is implementing Depa’s group-wide transformation and restructuring programme and continues to take action to reduce Depa’s cost base to protect its financial position, in addition to the continuation of its non-core asset disposal programme.
Further announcements will be made to the market as and when appropriate.
For further information, please contact:
Tel: + 971 4 821 6666
Kevin Lewis, Group Chief Executive Officer
Steven Salo, Group Chief Financial Officer
For more information, please refer to the corporate website: www.depa.com
Notes to editors:
Depa is a strategic management company specialising in global interior solutions. Depa’s four key business units hold leading positions in their respective markets: DSG, Vedder, Depa Interiors and Deco Group. Employing thousands of people worldwide, the Group’s operations are centred on three regional hubs: Asia, Europe and the Middle East.
Depa’s mission, shared by each of its key business units, is to deliver sustainability, profitability and performance for its clients, shareholders and employees. The Group’s five core values are integral to everything Depa does: transparency, integrity, accountability, professionalism and exceptional service.
Depa PLC is listed on the Nasdaq Dubai (DEPA: DU) and is headquartered in Dubai, United Arab Emirates.
This document may contain certain 'forward looking statements' with respect to Depa's financial condition, results of operations and business and certain of Depa's plans and objectives with respect to these items. By their very nature, forward looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events, and depend on circumstances, which may occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements. All written or verbal forward looking statements, whether made in this document or made subsequently, which are attributable to Depa or any other member of the Group or persons acting on their behalf are expressly qualified on this basis. Depa does not intend to update any such forward looking statements.