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Thu 28 Apr 2011 05:09 PM

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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)

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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