Global Investment House scraps capital hike plan
Kuwait, April 28, 2011
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 100 million dinars 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 231.24 million dinars through issuing shares at a nominal value of 100 fils per share.
Shareholders also voted to give the company a greenlight to write off 171.3 million dinars ($624.3 million) in losses.
Earlier this week, Global won a Dubai court ruling to get back $250 million from Abu Dhabi-listed National Bank of Umm Al Qaiwain in addition to $54.6 million in interest.
Maha al-Ghunaim, Global's managing director, said the interest will be added to the firm's revenues while the $250 million will be used to strengthen Global's financial position.-Reuters