Kuwait's Global to vote on $348m capital hike

Global Investment House plans to raise capital to $805m thorugh share issuance.
Kuwait's Global to vote on $348m capital hike
By Reuters
Mon 19 Apr 2010 12:40 PM

Shareholders of Kuwait's Global Investment House will vote on a 76 percent capital hike worth around $348.2 million on May 5, the firm said in a statement.

Global, one of the Gulf Arab state's biggest investment firms, plans to raise its capital to KD231.24 million ($805 million) through issuing shares at a nominal value of 100 fils per share, it said in a statement on its website. The firm seeks to increase its capital by KD100 million, it said.

There are 1,000 fils to the dinar.

The vote will take place at a shareholders meeting on May 5, it said.

In December, the firm reached a deal with creditors to reschedule $1.7 billion in debt, and entered into new three-year facilities with each of its 53 lending banks.

Global said it will also seek investor approval on cancelling a capital hike it called for in June 2009. The firm had planned to more than double its capital at the time to almost $1 billion.

The troubles of Global and other investment firms, including major Islamic firm Investment Dar, led the government of the world's fourth-largest oil exporter to approve a rescue package worth KD1.5 billion last year. (Reuters)

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