Arab Today, arab today leighton holdings boss al habtoor jv was a mistake
Last Updated : GMT 16:24:37
Arab Today, arab today
Arab Today, arab today

Leighton Holdings boss: Al Habtoor JV was a mistake

Arab Today, arab today

Arab Today, arab today Leighton Holdings boss: Al Habtoor JV was a mistake

Dubai - Arabstoday

The chairman of Australian contracting giant Leighton Holdings said yesterday his firm should never have signed a partnership with Dubai’s Al Habtoor Group. In an interview with The Australian Financial Review, Stephen Johns said he was unhappy with how the joint venture company Al Habtoor Leighton was faring in the wake of the financial crisis. \"With hindsight, no, we\'re not happy with [Al Habtoor Leighton], we should never have gone into it,” he was reported as saying. “Are we happy with where it is post-[global financial crisis] and what\'s happening in Dubai? No.\" The New South Wales-based company established the JV with Dubai’s Al Habtoor Group in 2007 in a bid to tap the booming UAE construction market. Leighton paid AU$870m (US$857.2m) for a 45 percent stake in the firm’s building arm Al Habtoor Engineering, which boasted US$4.4bn of total work in hand with predicted earnings of US$2.75bn for 2007-2008. But in the wake of the global financial crisis, which saw Dubai property prices plummet 60 percent and more than half of the emirate’s projects cancelled, the JV proved to be a drag on the rest of the company. In January 2011, Khalaf Al Habtoor, chairman of the Al Habtoor Group, said HLG was owed more than AED4bn (US$1.08bn) in payments from clients, while other executives said winning new projects was also proving difficult. Leighton Holdings last year reported an annual net loss of AU$408.8m at the end of June, which it blamed partly on its Middle East investment after the company was forced to raise AU$757m (US$800m) from shareholders and inject AED1bn (US$272m) into the UAE venture. The company had hoped to boost investor sentiment at the end of the year when it reported profits of AU$340m for the six months to December (a 57 percent profit rise compared with a year earlier), but its hopes were shattered when it became embroiled in a bribery scandal in the Middle East. In a February statement it confirmed that the Australian Federal Police were investigating its subsidiary Leighton Offshore over potentially improper payments related to a US$1.2bn oil project in Iraq. Leighton shares dropped almost 2 percent in one day. Media reports at the time said the firm’s executives remained positive, but the market was concerned about the ongoing strain of the group\'s Middle East ventures. Chairman of the Al Habtoor Group, Khalaf Al Habtoor, and the CEO of Habtoor Leighton Group, Laurie Voyer, declined to comment when contacted by Arabian Business.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today leighton holdings boss al habtoor jv was a mistake Arab Today, arab today leighton holdings boss al habtoor jv was a mistake

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today leighton holdings boss al habtoor jv was a mistake Arab Today, arab today leighton holdings boss al habtoor jv was a mistake

 



Arab Today, arab today Etiquette expert calls for short visits

GMT 16:21 2017 Monday ,26 June

Etiquette expert calls for short visits
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 11:09 2017 Sunday ,25 June

HUAWEI P10 the ‘guru’ of portrait shots
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday