Goldman Sachs Inc bought warrants worth 147 million dirhams ($40 million) in Dubai's Drake & Scull International , less than a week after helping arrange a loan facility for the contracting firm.
Drake, which specializes in mechanical, engineering and plumbing operations, said the "strategic" investment would represent about 8.5 percent of the company's current market capitalization.
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The warrants mature in five years and can be exercised by Goldman any time after two years, Drake said in a statement on Monday, without revealing any pricing details.
Goldman's exposure will be settled in cash once the warrants are exercised, subject to pre-agreed maximum cash settlement amount.
The contractor, which reported a 93 percent drop in third-quarter profit on Sunday, had signed a $120 million equivalent loan facility to support its growth into other markets last week.
Goldman acted as a coordinator for the loan facility. Drake's shares fell 0.5 percent on the Dubai bourse in early trade following the announcement. ($1 = 3.6730 UAE dirhams)
(Reporting by Praveen Menon; Editing by Dinesh Nair)