Milaha (formerly known as Qatar Navigation), held a crucial board meeting to discuss the recommended rights issue and also the proposal to increase the company’s paid-up capital.

As part of the extraordinary meeting held in April, the general assembly had approved the board’s recommendation to increase the paid-up capital by 20 per cent, from QR1.14 billion ($313,071) to QR1.37 billion through the issuance of 22,905,040 new shares offered to the company’s existing shareholders.

Milaha said the capital hike was mainly to fund the Qatari firm’s growth plans in its core businesses in the coming years.

The general assembly had also authorised the board to consult an investment bank or independent expert to review the recommended issue price of QR57 per share, including the nominal value of QR10 per share and a premium of QR47, and to confirm the reasonableness of the suggested price.

The Milaha board members consulted two independent experts, who provided valuations as well as benchmarking of the discount. Both the experts confirmed that QR57 was reasonable.

The company said an official announcement will be made in this regard to update the existing shareholders on the subscription dates and other terms and conditions, upon obtaining final approval from the concerned authorities.

The rights issue is expected to take place in the fourth quarter of this year.-TradeArabia News Service