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Wed 4 Aug 2010 02:33 PM

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Kuwait's IIG to halt 2009 dividend

International Investment Group is part of a hard-hit Kuwaiti investment sector.

Kuwait's IIG to halt 2009 dividend
KUWAITI IIG: IIG has appointed KPMG to advise it on restructuring its business.(Getty Images)

Kuwait's International Investment Group (IIG), the investment house in the midst of a restructuring process, on Wednesday said its board is proposing not to pay out any dividend for 2009.

IIG is one of the Kuwaiti investment houses badly hit during the financial crisis and last month was unable to make a $152.5m Islamic bond payment.

It has appointed KPMG to advise it on restructuring its business after it posted a 2009 net loss of 36.5 million dinars ($127.5mi) due to a slump in income from investments and fees and foreign exchange losses.

IIG said in a statement posted on the Bahraini stock exchange that it would ask shareholders during a meeting on Sept 2 to suspend its 2009 dividend.

It will seek approval to authorise a share-buyback program of 10 percent of its paid-up capital. (Reuters)

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