Kuwait's Global Investment House scraps capital hike plan

Increase would have raised capital to $842m through share issues at nominal value
Kuwait's Global Investment House scraps capital hike plan
PLAN SCRAPPED: Kuwaits GIH scraped its capital hike plans over regional concerns (Getty Images)
By Reuters
Thu 28 Apr 2011 05:09 PM

Kuwait's Global Investment House got shareholder approval to scrap its capital hike plan, saying regional conditions were not ripe to proceed.

Global's shareholders had approved a 76 percent capital hike worth KD100m ($364.4m) last May but the plan was not enacted.

Under Kuwaiti law, that approval was slated to expire a year after it was granted on May 5.

The increase would have raised Global's capital to KD231.24m ($842.6m) through issuing shares at a nominal value of 100 fils per share. There are 1,000 fils to the dinar.

Shareholders also voted to give the company a greenlight to write off KD171.3m ($624.3m) in losses.

Earlier this week, Global won a Dubai court ruling to get back $250m from Abu Dhabi-listed National Bank of Umm Al Qaiwain  in addition to $54.6m in interest.

Maha al-Ghunaim, Global's managing director, said the interest will be added to the firm's revenues while the $250m will be used to strengthen Global's financial position.

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