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Dubai's Drake and Scull planning Saudi deal after loan

Published: Updated:

Drake & Scull International PJSC, the Dubai-based company which raised $120 million in a loan coordinated by Goldman Sachs Group Inc. in November, plans an acquisition in Saudi Arabia and expansion in India and North Africa to help diversify revenue.

Drake & Scull will use proceeds from the loan for a possible $25 million buyout in Saudi Arabia, Chief Executive Officer Khaldoun Tabari said in an interview today.

The companys Saudi venture won a 2.7 billion-riyal ($720 million) contract in December to build four hotel towers in Mecca and the acquisition will help with the contract wins, he said.

Goldman Sachs in November bought equity warrants representing about 8.5 percent of the market value of Drake & Scull, whose shareholders include HSBC Private Bank.

The company said the same month it obtained a $120 million loan, coordinated by Goldman Sachs, to help it expand into other markets.

Drake & Scull, a supplier of engineering services to the construction industry, sought contracts in Saudi Arabia, India and Romania after Dubai's construction market was pummeled by a property crash.

Saudi Arabia, the biggest Arab economy, is spending about $130 billion to add jobs and stimulate its economy that expanded an estimated 5.6 percent last year.